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MMK and Kamaz Sign Memorandum on Cooperation

11/24/2010 - MMK and Kamaz recently signed a memorandum for construction of a metal service center in Naberezhniye Chelny (Tatarstan). The new facility to be commissioned in 2012 will be owned by MMK and Kamaz on a 50:50 basis.

Victor Rashnikov, MMK Chairman of the Board, and Sergei Kogogin, General Director of Kamaz, recently signed a memorandum for construction of a metal service center in Naberezhniye Chelny (Tatarstan).
 
According to the memorandum, the new facility to be commissioned in 2012 will be owned by MMK and Kamaz on a 50:50 basis. Overall investments into the project will exceed 1 billion rubles. When commissioned, the center’s processing capacity will reach 170,000 tonnes per year of hot-rolled steel.
 
Rashnikov said that “production of auto sheets meeting international quality standards is one of the strategic goals pursued by MMK. The new production facility will supply Kamaz with the necessary assortment of high-quality rolled stock.”
 
According to Rashnikov, Kamaz will be a major but not the sole customer of the metal service center. The center plans to ship its products to other automakers, construction sector players, bridge-engineering, and machine-building companies.
 
Kogogin said: “We consider today’s signing with MMK as a significant step towards stabilization of the Russian metals market as a whole and the automotive steel market in particular. Kamaz has been always speaking in favor of cooperation with steelmakers based on a stable, transparent, long-term, and mutually advantageous terms…We hope that other iron-and-steel industry players in this country will also contribute to increased stability in the automotive metals market.”
 
The open joint stock company MMK is among the world's largest steel producers and is one of the leaders of Russia's steel industry. The company's operations in Russia include a large steel-producing complex encompassing the entire production chain, from preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of higher-value-added products. In 2009, the company produced 9.6 million tonnes of crude steel and 8.8 million tonnes of commercial steel products.
 
Kamaz Group of Companies is the largest automotive corporation in Russia. OJSC Kamaz ranks 13th among the world’s leading heavy truck manufacturers and is 8th in the world in terms of diesel engines production. The process chain group includes 14 key automotive plants. The Group includes more than 150 subsidiaries in Russia, CIS, and internationally. Kamaz OJSC and its subsidiaries employ more than 50,000 people.