OREANDA-NEWS. Severstal-Gonvarri-Kaluga, a joint venture between OAO Severstal, one of the world’s leading steel and steel-related mining companies, and Gonvarri, and part of OAO Severstal’s Russian Steel division, has begun producing blanks for interior and exterior parts of the Volkswagen Jetta.

This is the second model of Volkswagen to use parts manufactured at Severstal-Gonvarri-Kaluga and then stamped at Gestamp-Severstal-Kaluga, Severstal’s joint venture with Gestamp. Previously, Severstal-Gonvarri-Kaluga produced blanks only for the Volkswagen Polo, assembled at VOLKSWAGEN Group Rus in Kaluga.

OAO Severstal now supplies steel for parts of the Volkswagen Polo and is currently awaiting approval before supplying steel for additional, including external, parts.

Meanwhile, Severstal-Gonvarri-Kaluga has started upgrading its cut-to-length line for trapezoid cutting. The upgrades will enable the company to fully load the cut-to-length line and release capacity on its stamping line for new projects. Total investment in the line upgrade will amount to 1,2 million euro

Dmitry Goroshkov, Marketing and Sales Director of Severstal’s Russian Steel division, commented: “By investing in improving our steel product processing yield the Company is able to satisfy growing demand from those international automakers with manufacturing sites in Russia and obtain approval to deliver steel for new parts and new car makes.”

Severstal also supplies to a number of other international automobile manufacturers in Russia, including Renault-Nissan, Hyundai-Kia, Ford, GM, PSA, etc.

This year the company plans to obtain approval to start delivering galvanized rolled steel for new car models manufactured by international automakers in Russia.