MMK has become the largest supplier of metal for the automotive industry
OREANDA-NEWS. August 03, 2015. Magnitogorsk Iron & Steel Works (MMK) increased by 20%,to 215 thousand tons, the supply of automotive industry in the first half. The share of automobile industry in the structure of shipment of metal products of MMK grew by almost 1 p. to 3.9%.
According to the newspaper "Vedomosti", the possibility of MMK in the production of products for the automotive industry expanded after the launch of mill-2000in 2011-2012. The whole automobile body sheet of MMK is sold on the domestic market now, but the plant, according to his representative, have plans to become a global supplier of foreign automakers, that built plants in Russia.
MMK was able to increase the supply, despite the reduction in car production (for the six months the car production fell by 24.4% to 679 thousand units, according to Rosstat). The increase of the localization helps foreign cars, says the employee of one of the automobile plants: automakers increase the local procurement of components to reduce currency risks and to execute the terms of the agreements on industrial assembly. MMK increased the supply for foreign automobile plants in the first half of the year almost 25 times to 6189 tons. Ford Sollers, according to his representative, increased "substantially" the local procurement of raw materials in the first half of year. The share of the Russian roll has reached 75%, and soon the Ford Sollers expects to buy the whole automobile body sheet in Russia. Suppliers of automaker – are MMK and "Severstal".
Representatives of producers of automotive steel - NLMK and "Severstal" refused to disclose how much they have delivered for automakers. But the steel division NLMK (it includes Lipetsk site and "VIZ-Steel") has reduced sales of hot-rolled steel by 4% to 1.2 million tonnes and cold rolled - by 7% to 709 thousand tonnes. But, for example, NLMK Belgium Holdings increased its first-half sales of hot-rolled immediately by 54% to 486 thousand tonnes. "Severstal" has kept sales of hot-rolled products at the level of 1.9 million tonnes and cold-rolled- reduced by 11% to 638,816 tons.




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