4 April 2012

Severstal increases deliveries to international automakers

Severstal, one of the world’s leading vertically integrated steel and steel related mining companies, following its updated development strategy that envisages, among other things, ramping up sales of added-value products, steps up deliveries of rolled metal products for international automakers that assemble their cars in Russia.

Since 2012 the Cherepovets Steel Mill supplies rolled metal products for Volkswagen cars, including VW Polo Sedan and VW Tiguan.

Furthermore its rolled stock will be used in the assembly of Škoda’s (part of the Volkswagen Group) Octavia and Fabia.

Dmitry Goroshkov, Director of Sales at the Cherepovets Steel Mill, commented: “Automobile manufacturing is one of Severstal’s key sales areas with a considerable potential for sustainable growth. Now we are considering future maintaining and expansion of business ties with automakers.”

Severstal has also signed a new long-term delivery contract with Hyundai that assembles its Hyundai Solaris, Hyundai Solaris HB and Kia Rio cars at the facilities of St. Petersburg-based ООО Hyundai  Motor Manufacturing Rus.

As agreed, the Cherepovets Steel Mill intends to more than double automobile body sheet deliveries as compared to 2011.

Moreover, Severstal has renewed its agreement with Renault that assembles cars at a ОАО «Avtoframos» plant in Moscow.

Currently, Severstal is the only steel company in Russia that has been approved by Renault as the supplier of galvanized rolled metal products for making car face parts.

The automobile body sheet produced at the Cherepovets Steel Mill is used for making bodies for Logan and Sandero cars. In mid-2011, deliveries of rolled metal products also started for making Renault Duster components.

Consumers of Severstal’s products within the automotive industry include GAZ, Sollers, Kamaz, avtoVAZ, General Motors Uzbekistan, Renault Autoframos, Belaz, Caterpillar, and Volkswagen.