MMK and AvtoVAZ hold coordination council
MMK is one of the main suppliers of rolled metal to the Togliatti-based automobile giant and AvtoVAZ is one of MMK's key consumers of automotive sheet metal. "Deliveries to AvtoVAZ account for more than 50% of the total volume of products that we manufacture for automotive manufacturers, and therefore we attach great importance to our partnership with this company," said MMK Deputy Director for Sales Sergey Ushakov, "Such coordination councils allow us to jointly find ways to improve the competitiveness of cars and increase sales in the automotive market."
Representatives of APO RUS (Togliatti) and LADA IZHEVSK also took part in the council. Such events are held on a regular basis - the current coordination council is already the 22nd consecutive event. Twice a year, the heads and specialists of the technical and commercial services of the two companies meet alternately at the buyer and seller's site to discuss topical issues of interaction, to solve important strategic tasks and to determine promising areas of activity. During the working visit, guests visited MMK's production site, in particular the sheet-rolling shops No 10 and 11.
At this coordination council, both sides discussed the implementation of decisions made at the last coordination council, considered product quality issues and outlined measures to improve the quality of metal. In addition, the participants of the coordination council discussed the organisation of supply logistics and agreed to continue work on the development of steel supply via rail containers. As well as this, the meeting focused on the development of promising metal products for automakers and defined additional metal characteristics required for digital modelling of car parts. The parties also discussed the possibility of supplying calibrated rolled products and welding wire produced by MMK-METIZ. The decision was taken for the next coordination council to take place in November or December of this year at the AvtoVAZ site.
Currently, MMK is a leading supplier of steel products from ferrous metals for automobile plants and related companies producing automotive components. The Company supplies cold-rolled and hot-dip galvanised steel to all major Russian companies in the industry, as well as to foreign automakers looking to localise their capacities in Russia. In 2018, the supply of MMK steel products to the automotive industry amounted to almost 550,000 tonnes, which was a record figure for the Company.
MMK is one of the world's largest steel producers and a leading Russian metals company. The company's operations in Russia include a large steel-producing unit encompassing the entire production chain, from the preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of high-value-added products. In 2018, the company produced 12.7 mln tonnes of crude steel and 11.7 mln tonnes of commercial steel products. MMK Group had sales in 2018 of USD 8,214 mln and EBITDA of USD 2,418 mln.
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