Magnezit Group presents the main results in the field of sustainable development for 2023 in its 3rd ESG report
August 18, 2024
Responding to external challenges, in 2023 the Group continued to improve corporate governance and adapt its product line, logistics and sales to meet customer requirements. At the same time, the Group remained on course to continue technical modernization and technological development.
As part of its commitments to the UN Sustainable Development Goals, the Group pursued the priorities and standards of environmental protection, set both in Environmental Policy and in the Agreement with the Government of the Chelyabinsk Region on cooperation to improve the environmental situation in Satka. At the same time, as a city-forming enterprise in the regions of its presence, the Group accelerated investments in the socio-cultural development of local communities, infrastructure development, contributing to the implementation of a number of National projects of Russia.
Main results:
For partners
In collaboration with customers, suppliers and contractors, the Group continues to develop its product line, creating import substitution opportunities in the metallurgical, cement and other key sectors of the national industry. At the same time, considerable attention is being paid to the expansion of regional ties and sustainable industrial cooperation to take it to new levels.
• The total volume of investments under the global technological modernization program in 2023 amounted to 2.6 billion rubles, exceeding 37 billion rubles. The introduction of modern technologies and innovations, automation and robotization of processes makes it possible to gradually increase the competitiveness of manufactured refractories — the degree of customer satisfaction with the quality of Magnezit Group products in 2023 amounted to almost 86%.
• A significant change in the geography of supplies has been achieved: as a result of structural adjustment, the share of Russian manufacturers of materials and equipment in the supply chain has increased by a quarter over the past three years and reached 75%.
• The development of the quality management system continued with the tightening of standards and the introduction of new regulations. In March 2023, a re-certification audit was conducted, which confirmed the Group’s compliance with the requirements of ISO 9001:2015.
• New types of refractory materials and products have been developed — by replacing imported materials in their composition with Russian components, cost reduction for customers has been achieved while improving all previously achieved physical and mechanical characteristics.
For nature
The basis of the activity for the production of refractory materials is the use of natural resources. In this regard, the Group continues to implement a set of measures to develop rational and economical technologies of their use to reduce the impact of production on the environment in the regions of its presence and on a global scale.
• Due to the development of the energy management system and the launch of new equipment in 2023, total energy consumption decreased by 22% compared to 2022, energy/revenue ratio decreased by 5.6%.
• Direct greenhouse gas emissions decreased by 26%.
• The volume of waste generation has been reduced by 23%, new technologies have been introduced for their use as components of a filling mixture for filling empty space in mines.
• The implementation of programs for the reclamation of the lands of the Satka production site and adjacent territories, as well as the Blooming City project, continued.
For employees
Magnezit Group is a large employer — the team has more than 4,500 employees. Attracting qualified personnel, promising young employees and retaining experienced professionals in the current conditions of personnel shortage in the economy as a whole determines the need for active management of human resources.
• In 2003, in order to strengthen human resources and scientific and technical expertise, the Group developed cooperation with industry educational and scientific institutions to update and launch educational programs taking into account the needs of the refractory industry. By the end of 2023, more than 50 Magnezit Group fellows were studying at various universities and colleges in the country.
• The system of material and non—material motivation of employees is constantly developing - the average wage growth for the Group over the past three years has amounted to 40%, the number of participants in the corporate programs "Healthcare" and "Transformation" has increased significantly.
• The Group continued to build balanced and productive relationships with its employees and associations that collectively represent their interests. In 2023, a new Collective Agreement was approved until the end of 2025, which retains all guarantees and compensations that were in force earlier.
• The volume of training on industrial safety and labor protection has been increased by 72% compared to 2022.
For the country and territories of presence
The Group's activities are important both for the economy of the country as a whole, since refractory products are vital for production in basic industries, and for regions of production activities. The Group is a responsible taxpayer, steadily increasing the volume of gratuitous investments within the framework of charitable projects, programs for infrastructure development in the regions of its presence, and developing partnerships with stakeholders for sustainable development.
• In 2003, the volume of financing of social programs exceeded 600 million rubles. A large infrastructure facility of the city, the Satka Ice Arena, has been put into operation. Other areas of investment include culture, the development of public spaces in the city, sports, and education.
• Mandatory payments amounted to more than 3.5 billion rubles. In particular, the Group's taxes were about 40% of all taxes paid to the budget of the Satkinsky municipal district of the Chelyabinsk region.
• Magnezit Group constantly participates in the largest scientific forums and openly shares its technological developments for the progress of the national industry. In particular, in 2023, according to tradition, the Group became the main partner and permanent participant of the International Conference of Refractories and Metallurgists, as well as a participant in the II Ecological Water Forum of the Southern Urals.
The report is available in Russian language only
Heads of industrial enterprises of the Chelyabinsk region, representatives of regional authorities discussed issues of industry development at the site of the Magnezit Group
June 17,2024
A meeting of the Board of the Chelyabinsk Regional branch of The Russian Union of Industrialists and Entrepreneurs (RSPP) was held in Satka. Before the event, the leaders of the Magnezit Group demonstrated their colleagues the achievements of the Group within the framework of a large—scale modernization programme. The guests visited the «Russian Magnezit» observation deck, the «Avant-garde» fused magnesia facility and the «Impulse» fired shaped products production complex, and then gathered in the «Magnezit» palace of culture hall.
The meeting started with the address by the head of the region Alexey Texler, he noted the success of the regional economy and the growth of social activities of local business. In this regard, the president of the Magnezit Group, Sergey Korostelev, spoke about the sustainable development of production, focusing on its future prospects, ongoing programmes for the development of the region’s infrastructure and projects for local communities.
The Group’s magnesite ore deposits of more than 230 million tons and the newly built production complexes, among the most technologically advanced and innovative in the refractory industry worldwide, provide the Group with the opportunity to increase support for the regions of its presence.
We are making great efforts to preserve and develop human potential, — said Sergey Korostelev. — Much of what you saw during the visit was created by joint work with the regional authorities, with the support of Alexey Texler. A vivid example of this is the Satka Ice Arena. The big, federal projects «Strong Family» and «Chess Universal Education» also originated in Satka, the «Million Trees» and «Blooming City» programmes are being implemented. There are many more projects waiting for us in the future. This path is not easy, but we see it clearly and know how to reach the destination. We can do it together.
The meeting was also attended by deputies of the State Duma of the Russian Federation, senators, members of the regional government, representatives of the Sverdlovsk regional RSPP and the All-Russian Non-Governmental Organization of Small and Medium Business «OPORA RUSSIA». The results of the work of the local RSSP since the beginning of this year were summed up, and the participants also discussed issues of cybersecurity of employees, changes in the rules for replenishing aquatic biological resources, the implementation of the educational project «Professionalism» and other topics. The meeting ended with the signing of agreements between Magnezit Group and South Ural State University.
— It is always a pleasure to visit Satka, Magnezit, to observe how the city gets prettier over time, how the enterprise develops. This is a great example for us, the manufacturers. There is much to learn, — said Semyon Mitelman, Vice President of the Russian Union of Industrialists and Entrepreneurs.
Environmental projects of the Magnezit Group are the winners of the "Best ESG projects in Russia" award
June 14, 2024
Magnezit Group large-scale projects on reforestation and compensation of greenhouse gas emissions «Million Trees» and «Blooming City» are among the winners of the «Best ESG Projects of Russia» award. Under the Million Trees project, the Group has planted more than one million trees in Satka to preserve the natural beauty of the Satkinsky district of the Chelyabinsk Region, increase biodiversity and improve air quality in the areas adjacent to the production site. The Blooming City project, launched in 2023 at the request of citizens to consolidate success of the Million Trees program, is only gaining momentum — but already the plantings include about 2.5 million flowers and almost 2.5 thousand seedlings of shrubs and trees on urban territories.
In particular, within the framework of the project, unique gardens of natural flora appeared in Satka, where deciduous and coniferous shrubs, flowers, ornamental cereals and ferns grow. Using the most effective landscaping techniques proposed by the scientific partners of the Group, it helps to to mitigate urban monotony and bring nature and the city closer together.
The jury of the competition highly appreciated the Group’s expertise in rational and responsible production with maximum attention to its environmental impacts within the framework of the global partnership for sustainable development. In each of the Group’s projects implemented as part of a large-scale modernization program, at least 20% is invested in green production and environmental initiatives.. Reduction of emissions is one of the key results of the program, for example, the efficiency of gas purification equipment systems is 99.9%, and direct greenhouse gas emissions have been reduced by a quarter in recent years. The new environmental projects additionally support the Group’s long-term goals of sustainable reduction of the carbon footprint and minimizing the environmental impact of the region’s industry in accordance with the adopted Environmental Policy.
Magnezit Group is a co-organizer of the International Conference of refractories manufacturers and metallurgists
May 23, 2024
Managers and specialists of the Magnezit Group take part in the international conference of refractory manufacturers and metallurgists, which is being held with the support of the Group at the National Research Technological University «MISIS» in Moscow on May 23-24.
At the opening ceremony of the conference, Dmitry Borzov, Development Director of Magnezit Group, made a report on activities of the Association of manufacturers and consumers of refractories and further development of cooperation with industry associations and major consumers from the metallurgical, cement and glass industries. He also emphasized the need for continued support of import substitution programmes both on the supply side of refractory materials to Russian customers and in terms of the development of heavy-machinery production for the needs of the industry. This approach is aimed to increase the sustainability and economic security of the entire national industry.
As a technological leader in the refractory industry, Magnezit Group pursues an active policy to develop scientific and technological cooperation and openly shares achievements in the field of innovation with stakeholders as part of its sustainable development strategy. This year, Magnezit Group technical specialists are presenting their research on various topics and discussing the new technologies and materials to increase the stability and durability of specific thermal vessel linings.
Magnezit workers will take part in the forum and visit an exhibition of instruments, equipment, technological developments and thematic literature, which will be organized as part of the conference.
For more than 20 years, this conference has served as a multinational platform for discussion and resolution of current issues by representatives of the metallurgical, refractory and their partner industries of Russia, the CIS countries, Europe and China. The Magnezit Group is its initiator and traditionally acts as a co-organizer, the Group’s leaders serving as members of the organizing committee.
Magnezit Group presented innovative experience in using industrial waste
April 17, 2024
This unique exhibition at the Chelyabinsk «Non-Museum of Garbage» is timed to coincide with the Day of Environmental Knowledge and the All-Russian campaign «Week of Environmental Knowledge». The Group presented its own exposition of technologies used for recycling and using waste, which significantly reduce the burden on the environment while increasing the efficiency of production activities.
The Group’s stand tells in figures and facts about the processes developed by our specialists for the environmentally friendly extraction of magnesite in a mine using a hardening composite. In its manufacture, waste rock remaining after the extraction of raw materials from the Group’s deposits, metallurgical waste supplied by partners and cement are used.
For comparison, the previously used mining method — room and pillar mining — required leaving 30% of the raw materials in the mine in the form of supports that prevent collapses, thus, a significant part of the valuable resources became inaccessible for further use. The use of a hardening composite instead makes it possible to extract 100% of natural magnesite while ensuring the stability of the earth’s surface, reduces the volume of waste rock dumps and provides opportunities for efficient use of metallurgical waste.
With respect for natural resources and preserving the possibilities of their use for future generations, the Group contributes to the implementation of the Sustainable Development Goals supported by it, including assistance in greation of sustainable consumption and production patterns (UN Goal No. 12). The Group also shares its experience in reducing the burden on the environment and developing eco-culture in the regions of its presence, talks about modern industrial complexes and production processes with the prefix «eco» to promote the sustainable development agenda and fulfill national priorities in this area.
Magnezit Group discussed issues of inter-industry cooperation with partners in the electrometallurgical industry and government officials
February 19, 2024
On February 15, the 8th International Industrial Conference «ELECTROSTEEL: TECHNOLOGY, EQUIPMENT, MATERIALS» was held in Moscow. It is organized annually by the Association «Russian Steel» and the magazine «Eurasia Metals» with the support of the Ministry of Industry and Trade of the Russian Federation.
In the reports of representatives of various manufacturing enterprises, great attention was paid to improvement of the efficiency of electric steelmaking processes and achieving the best indicators for the quality of steel produced. Technical managers and specialists of the industrial sector also discussed the tasks of cost reduction, expanding import substitution projects and ensuring reliable operation of equipment.
Dmitry Borzov, Development Director of Magnezit Group, took part in the conference with a report on the results of the Group’s large-scale modernization programme valued at over 50 bln roubles. In addition, in his speech, he presented proposals for the development of state support for the industry and inter-sectoral cooperation promotion. In his opinion, Russian enterprises of the refractory and metallurgical industries face a great task — to actively expand partnerships and find new levels of cooperation within the country.
This was also stated by government representatives, who also spoke about the need to help manufacturers of domestic products find more common ground. Among them are State Duma Deputy Alexey Kanaev and Deputy Head of the Non—ferrous metallurgy development department of the Ministry of Industry and Trade Andrey Saveliev.