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Severstal Signs Long Term Contracts with Russian and CIS Auto Companies

OAO Severstal, a vertically integrated steel and steel-related mining company based in Russia, has signed a number of further long-term contracts with Russian and CIS based automotive companies. So far in 2013, the company has signed one-year metal-roll contracts with GAZ Group, Sollers, KAMAZ, GM Uzbekistan and Volkswagen as well as half-year contracts with HYUNDAI-KIA, Renault-Nissan and Eurodisk, and quarterly contract with ZAZ.
Dmitry Goroshkov, director of marketing and sales of the Severstal Russian Steel Division, commented, “Long-term agreements like these benefit both parties by allowing us to develop new product types tailored to our customers’ specific needs, improving the quality of maintenance operations and by making production and logistical delivery schemes more efficient.”
In 2012, the Cherepovets Steel Mill launched large-scale deliveries of rolled metal products to Volkswagen’s Kaluga-based factory for use in the production of chassis, bumpers, suspension and body segments in the Volkswagen Polo Sedan range.
The range of Cherepovets rolled metal products delivered to GM Uzbekistan will increase in 2013, partly as a result of the commencement in October 2012 of rolled metal product deliveries for the new Chevrolet-Cobalt.
Deliveries of electroplated rolled metal products to GAZ Group have also increased as a result of the introduction of double-sided electroplated elements into GAZ machines. In 2013, GAZ will commence large-scale production of a new range of light commercial vehicles including the GAZelle NEXT, whose cab uses almost entirely electroplated steel.
This year, a representative of Severtsal’s customer technical support is expected to visit St. Petersburg, including a factory owned by OOO Hyundai Motor Manufacturing Rus. This service will allow them to promptly resolve any technical issues on-site.