KAMAZ, MMK AND URAL SIGNED A COOPERATION AGREEMENT

15 November 2021

KAMAZ PTC, PJSC Magnitogorsk Iron and Steel Works and Automobile Plant URAL JSC have signed a strategic partnership agreement at the Metal-Expo 2021 International Industrial Exhibition.

The document was signed by Ravil Ibragimov, Deputy General Director for Procurement of KAMAZ PTC, Pavel Shilyaev, General Director of PJSC MMK, Pavel Yakovlev, General Director of Automobile Plant URAL JSC, Vladimir Dremov, Director of MMK-INDUSTRIAL PARK LLC, and Konstantin Sverdlik, Managing Director of M-Steel Group of Companies.

The agreement provides for joining efforts for the supply of rolled metal and products made from it, optimization of logistics, warehouse resources and services.

The partners plan to set up the Service and Logistics Metal Center (SLMC) at the site of the MMK Industrial Park. The SLMC will be based on the anchor resident of the park – M-Steel Group of Companies, with direct involvement of Automobile Plant URAL JSC. The parties are considering attracting the transport company Intertrans-KAMAZ LLC to participate in the project and transport rolled billets from PJSC MMK by road trains running on liquefied gas.

The price for rolled metal products of PJSC MMK under transactions for KAMAZ PTC, the United Engineering Group (OMG), Automobile Plant URAL JSC and partners will be formed on preferential terms using a single individual discount system.

The establishment of the SLMC at the site of MMK-INDUSTRIAL PARK LLC is in line with PJSC MMK's strategic work with key customers in the automotive and mechanical engineering segments of the Russian Federation. At the same time, it is planned to increase the share of deliveries of rolled metal products of PJSC MMK for the needs of KAMAZ, the United Engineering Group and partners by optimizing logistics, increasing the share of deliveries by road transport, and order picking in temporary storage warehouses.

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