PAO Severstal, one of the world's leading vertically integrated steel and mining companies, and the largest car manufacturer in Russia, AVTOVAZ, a member of the Reault Group, have signed an agreement on the supply of rolled metal for 2021.
Under the terms of the agreement, Severstal will supply all types of metal that the client consumes during the year: cold-rolled, galvanized and hot-rolled pickled.
“The conclusion of another long-term agreement indicates the continued strengthening of relations between Severstal and the leading car manufacturer in our country. Additional opportunities for expanding cooperation are provided by the construction of a new continuous pickling unit No. 4. The implementation of such an investment project at the Cherepovets Metallurgical Plant is not accidental and is conditioned by market requirements. We see that new car models are becoming more durable and safer, and this is already reflected in its turn in the requirements for rolled metal. The new equipment will make it possible not only to master a wider range of products, but also to improve the quality of our rolled products. Already in 2021, we plan to offer AVTOVAZ the metal produced on the new line and begin to approve new positions with the partner, "says Severstal CEO Alexander Shevelev.
Opportunity to maintain and further develop cooperation including the results of the assessment of ASES (Standard for the assessment of the quality management system of suppliers of the Alliance Reault-Nissa-Mitsubishi).
The ASES standard is the same for all suppliers of the Alliance of Reault-Nissa-Mitsubishi. This audit, which included an assessment of the production chain at the Cherepovets Metallurgical Plant and the quality management system, was completed by Severstal last year. According to its results, the metallurgical company received a B * rank, which allows it to be a recommended supplier from the quality service for participation in new projects of the Alliance plants. Thus, the successful passage of the audit, confirming that Severstal complies with the Alliance's strict requirements, allowed us to consider new partnership opportunities and increase the share in supplies for the client.
Cherepovets rolled metal products are already supplied to most of the models that are assembled at the Alliance's car plants in the Russian Federation .Severstal's metal rolling is used in the manufacture of such critical elements of the car body as doors, hood, trunk lid, fenders, sidewalls, load-bearing elements and stamped wheel disks.