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MMK Becomes Steel Supplier for Ford in Russia
04/03/2015 - OJSC Magnitogorsk Iron and Steel Works (MMK) has been named as a steel supplier for Ford cars produced in Russia.
MMK is successfully completing the acceptance process for its steel plate with Ford Sollers Holding, Ford carmaker in Russia, and is increasing supplies of automotive sheet to the corporation.
Currently, two items of ultralow-carbon steel in various drawing categories used in the production of car body parts (including the front) for Ford Focus, have been fully accepted. High-duty ultralow-carbon steel for Ford Focus hoods is at the pilot batch approval stage. MMK also expects several items of ultralow-carbon steel for the production of Ford Kuga and Ford Explorer parts to be accepted. Furthermore, the Company aims to produce and supply the car manufacturer with high-density microalloyed and dual-phase steel both with galvanized coating and as a cold-rolled uncoated product.
MMK and Ford Sollers Holding have been cooperating on automotive sheet production localisation since 2010. This process involves phase-by-phase metal acceptance. During the first phase, the car maker receives special qualification sheets for the metal products it plans to purchase from MMK. These include a full overview of current production of each relevant steel grade including its key specifications and operational statistics. Following approval, Ford then places an order for a small pilot batch, usually of less than five metric tons. Provided the pilot batch receives positive reviews, Ford then places an order for a bigger pilot batch. If this pilot batch is approved, the parties then agree on commercial supplies of accepted metal.
MMK is one of the world's largest steel producers and a leading Russian metals company. The company's operations in Russia include a large steel producing complex encompassing the entire production chain, from preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of high-value-added products. In 2014, the company produced 13.0 million metric tons of crude steel and 12.2 million metric tons of commercial steel products. MMK Group had sales in 2014 of US$ 7.952 billion and EBITDA of US$ 1.607 billion.
Currently, two items of ultralow-carbon steel in various drawing categories used in the production of car body parts (including the front) for Ford Focus, have been fully accepted. High-duty ultralow-carbon steel for Ford Focus hoods is at the pilot batch approval stage. MMK also expects several items of ultralow-carbon steel for the production of Ford Kuga and Ford Explorer parts to be accepted. Furthermore, the Company aims to produce and supply the car manufacturer with high-density microalloyed and dual-phase steel both with galvanized coating and as a cold-rolled uncoated product.
MMK and Ford Sollers Holding have been cooperating on automotive sheet production localisation since 2010. This process involves phase-by-phase metal acceptance. During the first phase, the car maker receives special qualification sheets for the metal products it plans to purchase from MMK. These include a full overview of current production of each relevant steel grade including its key specifications and operational statistics. Following approval, Ford then places an order for a small pilot batch, usually of less than five metric tons. Provided the pilot batch receives positive reviews, Ford then places an order for a bigger pilot batch. If this pilot batch is approved, the parties then agree on commercial supplies of accepted metal.
MMK is one of the world's largest steel producers and a leading Russian metals company. The company's operations in Russia include a large steel producing complex encompassing the entire production chain, from preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of high-value-added products. In 2014, the company produced 13.0 million metric tons of crude steel and 12.2 million metric tons of commercial steel products. MMK Group had sales in 2014 of US$ 7.952 billion and EBITDA of US$ 1.607 billion.
