The largest car factories of the North-West region of Russia’s move to metal

Two of the largest car factory in the region — Hyundai and Ford — are switching to Russian metal "Severstal" to build their cars. "Severstal" the first of the Russian metallurgists managed to partially replace the imported car, is still used by foreign auto companies in Russia. Annual demand of automobile plants Petersburg now is 300-500 thousand tons of rolled up to € 450 million To compete for this market, "Severstal" seriously preparing for the Magnitogorsk Iron and Steel Works (MMK).


According to the report "Severstal", owned by her Cherepovets Steel Mill (CherMK) has started to ship its St. Petersburg plant hire Hyundai, and in July it will start shipping at the Vsevolozhsk plant and Ford. Both manufacturers say in "Severstal" will be used in the manufacture of metal CherMK body parts (such as roofs), respectively, for the assembly of Hyundai Solaris and Ford Focus (side body panels, doors, trunk, hood, etc.., Only eight items). On Friday, representatives from Hyundai and Ford were unable to confirm this. For the Hyundai plant is planned to ship until September 3 thousand tons of rolled CherMK and the volume of supply will increase, according to a representative of "Severstal". The volume of shipments planned for Ford is not specified. The "Severstal" in August and expects to begin shipping svogo metal at the Volkswagen plant in Kaluga for the production of 26 types of parts sedans Polo. "We are in talks with various producers," — said in a VW, refusing to comment further. Note that the Hyundai plant is going to release this year 105 thousand cars, Ford — about 90 thousand Focus, VW — 36 thousand Polo.

Russian steel long sought opportunity to deliver your rental to the factories of foreign manufacturers in Russia, which are now mostly imported metal. So far, only the Moscow factory Renault «Autoframos" for 30 body parts Logan and Sandero models buys Russian car at the Cherepovets Steel Mill, speak of "Severstal" and confirm in Renault. In the past year, "Avtoframos" CherMK bought 12.5 tons of metal, the plan for this year — 36 thousand tons.

However, the biggest competition is the largest Russian metallurgists, "Severstal" and the Magnitogorsk Metallurgical Combine (MMK), a long time was for the automobile enterprises of St. Petersburg and Leningrad region. Back in 2009, "Severstal" in cooperation with the Spanish Gestamp launched Vsevolozhsk plant for the production of stamped parts worth € 65 million (same they opened in Kaluga). A subsidiary of CMI, Inc. "Intercosmos-IV», in the last year has opened in St. Petersburg, a steel service center (SMC) worth € 100 million for the production of preforms for automotive dies (its capacity — 250 thousand tons of metal per year).

While competitors are cooperating. For example, "Intercosmos-IV» workpiece makes components for the assembly of Vsevolozhsk Focus, and the plant «Gestamp-Severstal" churning out parts themselves. Another client of "Intercosmos-IV» is a plant Hyundai, for which he also makes a billet, but the details of these stamps then to another supplier Korean concern — Plant Shinyong Metal («daughter» Canadian company Magna).

Now, however, "Severstal" and CMI, do not want to depend on each other. "Intercosmos-IV» announced that it will spend € 100 million on forging equipment, and "Severstal" announced it would invest € 25 million in the construction of Vsevolozhsk own metal center (capacity — 170 thousand tons of metal per year). It is expected that it will work in the next year, and "Severstal" does not hide the fact that they expect to make it blank for Ford and Hyundai, that is, to take the contract at the "Intercosmos-IV» (its representatives do not comment on it.)

MMK, in turn, builds and summer will launch a new cold rolling mill for the production of automotive sheet metal. It is intended to be used to "Intercosmos-IV» in the production of dies for foreign plants in the region, including Ford, Hyundai, GM (this year, "Severstal" has started to deliver your car to the Uzbek plant group) and Nissan, with which negotiations are under way, they say representatives of CMI.

Steelmakers have something to fight for, experts explain. Five power plants in the region now totals more than 500 thousand cars a year. According to the forecast of the St. Petersburg Committee for Economic Development, Industrial Policy and Trade (CEDIPT), five years of their capacity to increase to 750 thousand cars a year.

According to Boris Lazebnik, Director of Development, "Intercosmos-IV», for the production of one car requires 0.6 to 1 tonne of metal. Depending on the denomination, a ton of steel is worth € 800-1000, said Valery Kiselevich, the head of the St. Petersburg Association of Automotive Component. That is, even if the current power plants in the region of their annual demand for rolled metal is 300-500 thousand tons, which cost € 270-450 million (at an average price of € 900 per tonne). At the same time, says Mr. Kiselevich if steelmakers will of their own and make their own rental items, the added value for them can reach 100%.

Like this post? Please share to your friends: