Severstal will Supply Rolled Metal for Front Parts Kia Rio model

Severstal, JSC began to supply rolled metal for making a front roof panel for the new Kia Rio model.

Previously, such agreement was reached for another car - Hyundai Solaris (sedan and hatchback).

“Our experience in quality and timely deliveries has been approved by the Hyundai Motor Company plant and in the 4th quarter of 2011 we intend to begin deliveries of new items, including metal for face parts. Since the Hyundai Motor Manufacturing Rus plant plans to step up production in 2012. “Severstal is going to triple deliveries of rolled metal in 2012,” said Dmitry Gorshkov, Director – Marketing & Sales of Division Severstal Russian Steel.

Over the 9 months of 2011, Severstal has delivered a total of more than 4,500 tons of rolled metal to the Hyundai plant in St. Petersburg and obtained the approval for 47 parts for cars Hyundai Solaris (sedan and hatchback) and Kia Rio sedan.

The rolled metal delivered to the Hyundai plant meets the HYUNDAI-KIA GLOBAL MATERIAL GUIDE standard.

Automobile manufacturing is one of Severstal’s key sales industries with a considerable growth potential. Experts believe that by 2017 the automobile industry will consume up to 3 million tons of steel. In 2010 Severstal’s rolled metal accounted for 30% of total consumption in the Russian automobile industry, which made the company a leader in delivery volumes in this segment.

Severstal efficiently cooperates with major foreign manufacturers located in Russia, such as Renault, Volkswagen and Ford.

“We are committed to the increased cooperation with automobile manufacturing companies since the company’s development strategy envisages focus on niche high value-added products,” D. Goroshkov comments.

The company has invested over 634 million rubles to improve the sheet quality in the automobile industry over the last two years. Severstal’s innovations aimed at improving the automobile body sheet quality and innovative developments are confirmed today by 88 patented technical solutions and 10 awards of international car showrooms.

The questionnaire study conducted in 2010 showed that consumers in the automobile manufacturing industry highly appreciated the quality of rolled metal, saying that it was the best in Russia, timely deliveries and cooperation under long-term agreements. The percentage of clients in the automobile manufacturing industry covered by long-term agreements is 95%.

Severstal, JSC is one of the world’s largest vertically integrated steel and mining companies. With assets in Russia and other CIS, USA, Europe and Africa, Severstal reported revenue of $13,573 million and EBITDA of $3,263 million in 2010. Severstal’s crude steel production in 2010 reached 14.7 million tons. Severstal also produced 589 koz of gold at its gold mining assets in West Africa, Kazakhstan and Russia.