KAMAZ AND METALLOINVEST EXPAND STRATEGIC PARTNERSHIP

26 March 2018

KAMAZ and Metalloinvest have held a Coordination meeting in the course of which it was decided to expand strategic SBQ supply partnership.

KAMAZ PTC and Metalloinvest, a leading global iron ore and HBI producer and supplier, and one of the regional producers of high-quality steel, have held their second Coordination meeting.

The meeting of company delegates headed by Rustam Shamsutdinov, Deputy General Director, Purchasing, KAMAZ PTC, and Nazim Efendiev, First Deputy CEO, Sales Director, Management Company Metalloinvest, took place at OEMK, a leading supplier of high-quality rolled steel products (SBQ) for the automotive industry.

The parties agreed on the implementation of events to increase the efficiency of interaction between the companies related to SBQ supplies, including creating stock reserves of the products needed by KAMAZ and transitioning to an electronic document management. Decisions were also taken on KAMAZ using new steel grades produced by OEMK, including carrying out joint experiments and supplies of trial batches.

As part of the visit, the KAMAZ directors viewed the OEMK production facilities, including the electric arc furnace, rolling mills and the finishing plant.

In 2017, OEMK supplied almost 50,000 tonnes of high-quality rolled steel products to KAMAZ, meeting the very highest standards required by the automotive industry. 2018 supplies are expected to be in line with this figure.

Rustam Shamsutdinov commented, "We have once again seen for ourselves the top-class level of production and high quality of OEMK's products. Our trucks were undefeated at the Dakar rally, in part thanks to the high-quality steel supplied by the Oskol metallurgists. The regular interaction between KAMAZ and Metalloinvest specialists as part of the Coordination meetings helps us to expand the line of orders, improve logistical procedures, and resolve technical issues. Notably, we have agreed to provide warehouse stocks of metal and switch to electronic document management. Together with its partners and suppliers, KAMAZ is committed to the ongoing growth in the quality of produced vehicles and components."

Nazim Efendiev added, "The Coordination meeting is an effective and productive format which enables us to gather specialists with expertise in the commercial and technical aspects of our companies' partnership around one table and swiftly resolve a wide range of issues. KAMAZ is expanding its product line, which is diversifying and making more sophisticated the range of rolled steel products Metalloinvest is supplying. This opens up additional opportunities for the strategic partnership between Metalloinvest and KAMAZ: jointly, we are developing new steel grades and are working together systematically in all areas of the supply and service chain.”

Andrey Prosyanik, Director of Domestic Sales, Metalloinvest, added, "During many years of cooperation, OEMK supplied over half a million tonnes of high-quality steel to KAMAZ. This includes the production of metal products for transmission manufacturing. We are constantly working on expanding the product range. ZF, KAMAZ's German partner in the production of gearboxes, is conducting an approval procedure for the production of rolled steel products made from alloy steel with increased strength (grade ZF7B). This is a large-scale and important project for Metalloinvest. KAMAZ's demands for product quality and delivery conditions are constantly growing, and these Coordination meetings help us to effectively analyse the completed work and plan further steps."

In November 2017, Metalloinvest and KAMAZ signed a three-year memorandum of cooperation in regards to the supply of SBQ. KAMAZ orders up to 80% of its long steel product requirements from OEMK. OEMK’s high-quality long steel products are used at KAMAZ’s enterprises for the production of the most critical vehicle components and units – drive shafts and gearboxes, gears, cogwheels, steering components, shock absorber links, springs and struts.

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