Iskander Makhmudov and the UMMC: a lifelong ambition and a fruitful project
Iskander Makhmudov’s ambition come to fruition
Iskander Makhmudov, born on the 5th of December, 1963 in the city of Bukhara, in Uzbekistan, is a businessman in the Russian industry and the chairman of the company Ural Mining and Metallurgy Company (UMMC). Focused on the mining sector, non-ferrous metallurgy, and mechanical engineering, the business activities of Iskander Makhmudov represent billions of dollars of annual turnover, making him one of the most important industrialists in the country.
In 1991, the Soviet Block fell and commercial opportunities began to multiply for Soviet entrepreneurs. Foreign investors started to integrate themselves into the market and Iskander Makhmudov saw an opportunity. Leaving the public sector domain, he then entered the private sector in Moscow with the goal of finding business opportunities in the Russian capital. He then worked as the Deputy Director of Marketing at JSC Alice, before coming back to industry, his preferred domain. Afterwards, he worked between 1996-1998 as the Director of Social Industry and Finance for Meta-Service, another subsidiary of JSC Alice. He then became General Director of the Mining Combination and Enrichment of Gaï, a mining processing company.
In 1999, Iskander Makhmudov created the Ural Mining and Metallurgy Company (UMMC), where he became the chairman and main shareholder. This company is made up of more than 40 subsidiaries in the industrial sector, mining, non-iron metallurgy, and mechanical construction.
An empire Iskander Makhmudov built through consortiums and acquisitions
The company is one of Russia’s top producers of major commodities including copper, zinc, coal, gold and silver, which contributes in making the UMMC one of the largest industrial companies in Russia. In addition, the company also produces lead, selenium, tellurium, cadmium and indium. With 80,000 employees, UMMC’s headquarters are situated in Verknaya Pyshma in the Sverdlovsk region of Russia.
During the course of the 20th century, a consortium of mining companies were brought together under the Soviet economy to form the Soviet industrial trust Uralmed, which was the main producer of Soviet copper. Following the collapse of the USSR, these existing copper enterprises were consolidated into joint stock companies. Two of these companies – Uralelektromed and Gayskiy GOK – created the foundation for the creation of UMMC in 1995. The UMMC was officially established in 1999 and has since been consolidating the largest part of copper enterprises in the Urals and elsewhere.
Iskander Makhmudov’s strategy: creating internal synergies to bolster the activity
Iskander Makhmudov made sure that the UMMC would go on to consolidate downstream industrial processes, such as brass mills, cable and machinery plants, and has also diversified its metal production to include precious metals such as gold and silver, as well as zinc and steel mills.
Since 2006, the UMMC has managed Russia’s second largest coal mining company Kuzbassrazrezugol, which was fully incorporated in 2015. Further industrial consolidation occurred in 2016 when the UMMC incorporated the Chelyabinsk Zinc Plant, making the UMMC Russia’s largest producer of zinc.
Recently, the UMMC has received accredited employment from the Association of Chartered Certified Accountants. The accreditation is the international standard for activity alignment and professional development, and UMMC’s recent recognition is a reflection of the quality and high standards the company has put into place to train its employees whole contributing to the development of the company brand.