UrBC, Chelyabinsk, December 12, 2016. The construction site for a new steel service facility was launched in Tatarstan, Russia, on December 12. This is going to be a joint venture run by Magnitogorsk Iron & Steel Works (MMK) and Coşkunöz Alabuga, a pressed parts manufacturer.

The facility is to be located in Alabuga, Russia’s largest special economic zone for industrial enterprises. The solemn launching ceremony was attended by President of Tatarstan Rustam Minnikhanov, Governor of Chelyabinsk Region Boris Dubrovsky, MMK Chair of the BOD Viktor Rashnikov, Coşkunöz Holding AŞ Chair of the BOD Mehmet Besler, and a number of other officials and representatives of leading carmakers (the JV’s potential customers).

‘The Alabuga facility will be making up to 41,500,000 kg of steel blanks that are used in making car parts a year. This means Russian carmakers and foreign manufacturers with car factories in the Volga Region and the Urals will be able to benefit from a fully local production cycle. We see Ford, Kamaz Daimler, ARNPO, KAMAZ, AvtoVAZ, UAZ, GAZ, and others as our potential customers. In addition to handing the production of automobile body sheets over to the new JV, MMK will also supply the facility with 97.5m RUR worth of equipment. MMK’s share in the business comes to 35%,’ the company press service says.