Severstal Cherepovets, the main steel producing facility of Severstal Russian Steel, has announced that it has signed supply contracts for 2010 with companies from the automotive industry, including the Russian car producers AvtoVAZ, GAZ and Ulyanovsk Auto Plant (UAZ), and also with the Uzbekistan-based carmaking joint venture GM-Uzbekistan.
According to the company's statement, such arrangements are significant both for the clients from the automotive industry, which is one of its priority sectors in the market, and for Severstal Cherepovets. The one-year contracts allow the steelmaker greater clarity in planning its production, ultimately having a positive effect on the efficiency of the company.
In 2009, Severstal Cherepovets delivered about 300,000 mt of rolled steel products, down 47 year on year, to Russian auto industry companies. Meanwhile, the percentage of Severstal Cherepovets' rolled products in the total consumption of Russian carmakers remained unchanged in 2009, at more than 30 percent.