Digital Dawn, Determined Drive & Data-Driven Direction

Magnitogorsk Iron & Steel Works stands as a testament to how even heavy industry giants can embrace digital transformation without losing their industrial roots. Speaking at the sixth “Next Connect: Fusion of Technologies” conference in Magnitogorsk, Evgeny Tarabaev, head of MMK’s Economics Department, laid out an ambitious vision: by end of 2025, Robotic Process Automation, or RPA, is forecast to save the company RUB 2 billion. This figure is part of a broader digital journey where MMK has invested around RUB 4 billion since 2019, already reaping RUB 4.7 billion in savings.

“Digitalisation is not a luxury but a necessity,” Tarabaev told delegates. “Robots do not rest, do not make mistakes, and they free human experts to focus on more strategic, analytical tasks that add far more value.”

Algorithmic Alchemy, Analytical Acumen & Automated Achievements

Among MMK’s 160 high-tech initiatives and 95 completed IT projects, the Optimal Pig Iron system stands out as a transformative tool. This digital model fine-tunes every stage of pig iron production: from the procurement of coal and metallurgical feedstocks to calculating the precise loading of blast furnaces and adjusting the chemical composition of charges. By ensuring the best price-to-quality ratio, the system directly reduces raw material costs, improves product consistency and supports sustainable practices.

Tarabaev explained, “The goal is clear: produce pig iron that meets our quality standards while keeping costs under tight control. This system helps us balance price, performance and predictability.”

Process Precision, Predictive Power & Proactive Planning

MMK is not stopping at RPA. The company has adopted a layered approach that includes AI, machine vision, process mining, task mining and big data analytics. Process mining and task mining act like digital X-rays, revealing how work actually flows through MMK’s complex operations, from supply chain to production and logistics. This clarity helps identify repetitive steps suitable for automation and highlight bottlenecks to fix.

“Advanced process analytics gives us foresight instead of hindsight,” Tarabaev said. “We are no longer reacting to problems after they occur; we anticipate and prevent them.”

Savings Stability, Strategic Scaling & Sustained Success

Financially, the strategy shows a smart balance between cost and reward. RPA costs remain quasi-fixed, while savings build up year after year as new bots enter service. In 2024 alone, these technologies delivered RUB 500 million in savings, with cumulative savings since 2019 exceeding RUB 1.2 billion. The forecast for 2025 pushes the cumulative total to RUB 2 billion.

“Every new robot added multiplies our savings potential,” Tarabaev emphasised. “They keep working quietly in the background, freeing our human teams to focus on innovation and higher-level problem solving.”

Collaborative Confluence, Conference Conversations & Cross-Sector Cohesion

The “Next Connect: Fusion of Technologies” conference, organised by the Next Robotics Technology Centre alongside MMK and MMK-Informservice, with support from Primo RPA, Gazinformservice Certification Centre, Ramax Group and VK Tech, created a shared space for dialogue between experts from metallurgy, retail, telecoms and IT. Speakers and delegates exchanged strategies on integrating emerging tech into traditional industries without losing reliability or safety.

“This event shows digital transformation isn’t an isolated effort,” Tarabaev noted. “Collaboration with technology partners and learning from other sectors accelerates our progress.”

Centre of Competence, Constant Calibration & Cognitive Craft

To maintain this momentum, MMK launched a dedicated centre of excellence for AI and digital transformation. This unit continuously pilots new tools, refines algorithms and provides training to staff across MMK’s sites. From predictive maintenance on heavy machinery to automated data gathering for compliance reports, the centre keeps MMK ahead of the curve.

“Our centre of excellence acts as a lighthouse,” Tarabaev explained. “It guides our teams through the complex process of integrating digital tools into daily workflows.”

Quantitative Quest, Quality Quotas & Quotidian Questions

Tarabaev also addressed questions on how MMK measures its digital progress. Key metrics include: reduction in manual interventions, cycle times shortened by seconds per task, improved accuracy in forecasting production needs and steady reduction in variance across product batches. By capturing and analysing data at every step, MMK ensures each robot and AI system delivers measurable business value.

“Numbers do not lie,” Tarabaev concluded. “Every rouble saved, every second gained, strengthens our competitiveness in a volatile market.”

Stock Price Indicators: Metrics & Momentum

MMK trades on the Moscow Exchange under ticker MAGN. Current stock price: RUB 46.80, Change DoD: +0.3%.• Support & Resistance Levels: Support near RUB 46, resistance around RUB 48.• Simple Moving Average (SMA): 50-day SMA at RUB 46.10, 200-day SMA at RUB 45.00.• Relative Strength Index (RSI): 68, signalling slightly overbought.• Moving Average Convergence Divergence (MACD): Indicates continued upward trend.• Bollinger Bands: Price near upper band, suggesting possible volatility.• Fibonacci Retracement & Extensions: Next extension target is RUB 48.50.

Key Takeaways:

• MMK plans to save RUB 2 billion by end 2025 through Robotic Process Automation.

• Investment of RUB 4 billion since 2019 has already produced RUB 4.7 billion in savings.

• Tools like Optimal Pig Iron system, AI & process mining reshape MMK’s operations.