Severstal, one of the key fully integrated steel producers in Russia, has recently signed an annual agreement with the largest local automotive manufacturer Avtovaz regarding steel supplies in 2021. According to the agreement, Severstal will handle the supplies of all finished flat steel required by Avtovaz - cold-rolled, pickled hot rolled and zinc-coated products. “The construction of the new pickling line gives us the additional opportunities to expand cooperation with Russia’s leading automaker. The realization of this project at Cherepovets mill is conditioned by the market requirements. The new equipment will help us not only master the more extended production range, but to also improve the quality of our flat steel. Within the year 2021, we plan to offer Avtovaz the steel produced at the new line and to start getting approval for the new products from the partner,” said Alexandr Shevelev, general manager of Severstal.
As SteelOrbis reported previously, the new line of Severstal will have around 2 million mt per year pickling capacity, which means around 160,000 mt per month. “The key goal is the pickling and the further downstream production of auto sheet,” a source said.