MMK to put up maintenance center in Naberezhniye Chelny

BOD Chairman of Magnitogorsk Iron & Steel Works (MMK) Viktor Rashnikov and General Director of OAO KAMAZ Sergey Kogogin signed a memorandum on the construction of a maintenance center in Naberezhniye Chelny.

Under the terms of this document, the new enterprise is to be launched in 2012. OAO MMK and OAO KAMAZ are going to own equal shares of the business that will require over 1 billion RUR worth of investments. The annual output of the hot-rolled products processing facility will probably come to 170,000 tons, MMK PR Department reports.

‘One of MMK strategic development targets is related to automobile body sheets manufacturing. We want this product to meet the existing international quality standards. Our new production facility will provide OAO KAMAZ, a major truck manufacturer, with the high-quality product variety they need,’ MMK BOD Chairman Viktor Rashnikov said when asked to evaluate the project’s potential.

The executive feels OAO KAMAZ will probably be the maintenance center’s key but not the only customer. In the future, products will be made not only for KAMAZ or its daughter enterprises but also for other automobile manufacturers. In addition, the center will be selling its goods within the construction and bridge- and machine-building industries.

‘We see our memorandum with MMK as an important move towards making both the Russian metal market on the whole and the market of metal goods for carmakers in particular more stable,’ says General Director of OAO KAMAZ Sergey Kogogin.

‘KAMAZ has always been willing to cooperate with its metal goods suppliers on a stable, mutually beneficial, long-term, and predictable basis. I am glad to see our efforts in this direction gradually become a reality. We can only welcome our Magnitogorsk partners’ initiatives on setting up some modern metallurgical facilities on their home premises and in other Russian cities, as these facilities are intended to make great quality products that meet the world standards and can be used in the Russian car-making industry. We hope the country’s other metallurgical enterprises will also contribute to the stabilization of our metal goods market,’ he adds.

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