Severstal develops cooperation with International Auto Concern 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.

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 AAT. Rolled metal products sales may increase under this agreement by 3 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. Items of galvanized rolled products extensively used for front parts (hood, roof, fenders, etc.) have greatly increased in number.

Furthermore, promising test results for samples of cold-rolled microalloy high-strength products previously sent to a Hyundai-Kia laboratory in Korea have been received as part of the approvals procedure for delivering 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 Severstal rolled metal products (scheduled for January-February 2011).

Positive welding test results for samples, grade WSS-M1A345−A3, previously sent to laboratory INGEMAT (Spain) have been received as part of the approvals procedure for delivering Severstal rolled metal products to Ford (a plant in the Leningrad Region, stamping in Gestamp-Severstal-Vsevolzhsk). Also, zinc coating adhesion tests 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.