Severstal increases shipments to Russian and CIS car manufacturers

During the first ten months of 2012, the Cherepovets Steel Mill (“CheMC”), part the Russian Steel division of OAO Severstal, one of the world’s leading steel and steel-related mining companies, has increased shipments of rolled steel to Russian and CIS-based car manufacturers by 15 percent year-on-year.

This growth is primarily due to increased supplies to KAMAZ, Renault-Nissan, Hyundai-Kia and GAZ Group.

Total rolled steel volumes shipped to KAMAZ during the first ten months of 2012 increased significantly, by 4.7 times, compared to the same period in 2011. CheMC’s rolled steel products are used in the manufacture of KAMAZ trucks and special-purpose vehicles.

Shipments to GAZ Group climbed by 15% in the first ten months of 2012 year-on-year. GAZ Group is Severstal’s key customer, and an estimated 72% of CherMC’s production supplies GAZ Group. CheMC’s rolled steel is used by GAZ Group in the manufacture of medium and light duty commercial vehicles, buses and road-building machinery.

This year Severstal has also developed a key supplier relationship with Renault-Nissan alliance, supplying 88% of their needs for rolled metal products in Russia, which are used in the production of domestically manufactured cars.

In 2012, CherMC plans to supply twice the automotive body sheet to Hyundai-Kia as it did last year. Rolled steel is used in the manufacture of the Hyundai Solaris and Kia Rio models.

Dmitry Goroshkov, Marketing and Sales Director at the Severstal Russian Steel division, commented: “The automotive industry is key strategic focus for Severstal, and we plan to expand our presence in this market. Severstal has the expertise and experience required to be the leading supplier of rolled metal products to the automotive industry.”