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Severstal

July 9, 2002

Severstal-Group is invited to the ceremony of opening of a new plant of the Ford Motor Company in Vsevolgsk, Leningrad region

Severstal is invited to the opening ceremony in the capacity of a possible future supplier of flat rolled products. So far, it's planned that all steel parts for the new Ford assembly plant in Leningrad region will be ordered from Europe.
   At first only a small portion of parts which will be used in the make up of each Ford vehicle made in Vsevolgsk, worth only US $ 400, will be produced in Russia. They are mainly glasses, rags and mudguards. In the future the plant intends to increase the share of Russian made parts up to 50%.
   According to Dmitry Goroshkov, Severstal's sales director, Severstal intends to become a supplier of steel for the Ford plant in Vsevolgsk and Ford plants in Europe already this year.
   To be able to achieve this goal and cooperate with Ford plant in Vsevolgsk, Severstal is considering obtaining an international ISO-900/TU 16949 certificate - an 2002 version, which incorporates standards of the leading world automotive companies, such as Ford, Crysler and General Motors.
   Additionally, in order to meet the strategic goal of increasing sales to the automotive industry, in April 2002 Severstal created Severgal - joint plant with Arcelor company, which will produce galvanized steel sheets with Extragal coating.
   Alexander Konyukhov, director of finance and economics of SMZ (Zavolzhye Engine-making Plant), was also present among the participants at the plant opening ceremony. ZMZ, part of Severstal's automotive division, is being considered as a potential supplier of Ford, Vsevolgsk, as well.
   Ford Motor Company invested US $ 150 million into the Ford plant in Vsevolgsk and expects that the pay back period will not exceed 14 years. At first, Ford, Vsevolgsk, will make three Ford models: Sedan, Hatchback and Universal. In the future, it's possible that the product line will be expanded to include other brand names, owned by Ford. The plant's capacity is 25,000 vehicles a year. In 2002, the plant expects to sell 3,000-4,000 Ford Focus cars, assembled in Vsevolgsk.

 

 

 

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