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OAO Severstal Develops Ties with International Auto Facilities in Russia

Severstal continues to be an official supplier of rolled metal products for the Renault group in Russia, and also received positive test results for rolled metal products from HYUNDAI-KIA and Ford, which will enable it to start deliveries to those companies in the medium term.
 
ОАО Severstal has entered into a 6-month agreement with Renault for the delivery of rolled metal products for Renault Logan and Renault Sandero car part stampings to be produced by ООО ААТ. Rolled metal products sales may increase under this agreement by three times as compared with the previous period, which is connected with the increased localization of stamping in Russia.
 
The range of products spans hot-rolled pickled, cold-rolled and galvanized rolled stock. All items of hot-rolled and galvanized rolled products used in the manufacture of those cars are purchased in Russia from Severstal only. The number of galvanized rolled products extensively used for front parts such as hood, roof, fenders, etc. has continued to increase significantly in number.
 
Furthermore, promising test results for samples of cold-rolled microalloyed high-strength products previously sent to a Hyundai-Kia laboratory in Korea have been received as part of the approvals procedure for delivering ОАО Severstal rolled metal products to HYUNDAI-KIA (a St. Petersburg-based integrated factory). The next approvals phase is stamping of Hyundai Solaris car parts using ОАО Severstal rolled metal products, which is scheduled to take place from January to February 2011.
 
Positive welding test results for samples of grade WSS-M1A345−A3, previously sent to INGEMAT laboratory (Spain) have been received as part of the approvals procedure for delivering ОАО Severstal rolled metal products to Ford, including supply to a plant in the Leningrad Region with stamping in Gestamp-Severstal-Vsevolzhsk. Zinc coating adhesion tests also have been successfully carried out.
 
The technical audit of the quality management system, production processes and product quality control also needed for the approvals procedure is slated for March 2011.