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Construction of plant in Saint Petersburg is ahead of schedule, Viktor Rashnikov says

Governor of Saint Petersburg Valentina Matvienko met BOD Chairman of Magnitogorsk Iron & Steel Works (MMK) Viktor Rashnikov to discuss the implementation of the enterprise’s investment project involving the construction of an automobile pressings plant and a maintenance metal goods center. In fact, the work on both construction sites is going ahead of schedule; MMK’s top executive reports the metalwork section will have been finished by the end of the year, the delivery and assembling of all the machinery will begin in February 2009, while the plant’s production lines will have been launched by the end of 2009.

During his visit to Saint Petersburg, Viktor Rashnikov met the top management of nearly all the car factories based in the city. All the automobile manufacturers reported they were interested in being able to use the future plant’s produce as soon as possible. Governor Matvienko spoke on the city’s need for such a plant as well.

‘We want this project to develop dynamically, and we are prepared to support it in every way,’ she said.

MMK has already made a number of important steps needed to make this project work. In July 2007, the company signed an agreement with SMS Demag, the German machine-building giant, regarding the construction and delivery of cold-rolling mill 2000 meant for manufacturing of high-quality automobile body sheets as well as of all the accompanying equipment. The mill will be used for making the best cold-rolled and galvanized mill products there are for the car industry, manufacturers of home appliances, and the building industry.

In August 2007, MMK bought 75% of shares of a Saint Petersburg-based Intercos-IV that deals in manufacturing of dies and pressings.

In September 2007, Governor of Saint Petersburg Valentina Matvienko and MMK’s Chairman Viktor Rashnikov signed an agreement on some 3 billion RUR worth of investments in the future plant. In December 2007, the ceremony of laying the foundation stone for the future pressings-making plant took place. The event was attended by Russian President Vladimir Putin (as he then was).

In addition, MMK recently became Saint Petersburg’s strategic investor.

The future plant will deal in full-cycle production of body parts and subunits for automobiles that would be totally comparable with their best foreign counterparts. This plant’s produce is to be used by car factories like Ford, Toyota, General Motors Company, and Nissan and by manufacturers of home appliances like Bosch-Siemens and Electrolux. As for the maintenance metal goods center, its produce is meant for the building industry, machine- and shipbuilding and other consumers based in Saint Petersburg and Leningrad Region. Direct delivery and recycling of modern plate stock at the future facility will enable MMK to meet the needs of metal-using industrial branches in the best possible way, the spokesperson for the enterprise reports.
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