Severstal plans to keep the volume of orders from UAZ the same as in 2002, when it shipped about 18,000 tonnes a month. It intends to increase the range of products and add more sophisticated products to its product offering.

"It's important to us to move forward along with our clients. From that point of view, AvtoVAZ is a valuable partner," Anatoly Kruchinin said of the results of the Council.

Next year, Severstal intends to increase shipments of cold rolled IF steel up to 5,000 tonnes. Test lots of this steel in the amount of 1,000 tonnes were shipped to the automotive company in the second half of 2002 with the launch of the de-airing device in the converter shop.

In 2003, when the Continuous Casting Machine in the electric arc shop is set to operating at the required rate, Severstal will increase the range of products it ships to AvtoVAZ. This includes products made by means of a new technology.

In the first quarter of 2003 Severstal will make test shipments of hot dip aluminum plated rolled steel to AvtoVAZ. This steel is used in the make up of exhaust systems in gas tanks of VAZ vehicles. It used to be imported by the car-maker.

AvtoVAZ will also test galvanized sheets with Extragal TM coating similar to the one, which Severgal will be making. Cherepovets Steel Rolling Plant and Severstalmash have also outlined their plans for working with Avtovaz. For example, SSM-Tyazhmash will increase shipments of sprayed iron powder for VAZ' parts and supply test lots of partially alloyed powders.

Cherepovets Steel Rolling Plant will ship test lots of corrosion resistant strip, used in junctions of collectors with engines on top of 1,200 tonnes of calibrated steel and shaped section steel a month it's presently shipping.