Victor Rashnikov and Sergey Kogogin met in Moscow to discuss cooperation between the two companies, including supplies of MMK’s innovative import-substituting rolled products to KAMAZ, as well as cooperation under the “Localisation-Wave 2” programme.
Magnitogorsk Iron and Steel Works (MMK) is a key supplier for KAMAZ, one of the largest car manufacturers in Russia. In the past five years, the share of MMK's metal products in the total consumption of KAMAZ was reaching 70%.
One of the main subjects discussed at the meeting was cooperation in import substitution. Samples of MMK's latest rolled products, which could replace some of the imported products used by KAMAZ, have already been successfully tested at NII Stali (The Steel Research Institute). Experts concluded that the MMK samples met all the necessary requirements. MMK has already shipped a pilot batch of rolled products to KAMAZ for technological tests.
In addition, MMK has mastered the production of rolled products using special technologies that increase the metal's resistance to multi-cycle fatigue. This enables MMK's innovative rolled products to last longer and outperform other types of rolled products on the market in terms of quality.
The executives of MMK and KAMAZ emphasised that as a result of the meeting, bilateral long-term formula-based pricing contracts have been.
Mr Rashnikov and Mr Kogogin also discussed the cooperation between MMK and Daimler Kamaz Rus, which produces cabins for Mercedes-Benz and KAMAZ heavy-duty vehicles. MMK already produces the metal used in KAMAZ K5 cabins, and thanks to the implementation of the “Localisation – Wave 2” programme, MMK will be able to expand production, meaning all parts of the cabin will be made from Magnitogorsk steel. Some rolled product prototypes have already been produced and sent to Daimler Kamaz Rus, while others are still in production. Implementing this project will reduce dependence on rolled metal supply from abroad, while also providing a certain synergy to the partnership between MMK and Daimler Kamaz Rus.
Mr Rashnikov commented: “Partnering with KAMAZ is very important for us, as MMK positions itself as a leading supplier to the automotive industry. KAMAZ is a reliable partner for us, a strong company with a stable position in the market. We, in turn, strive to provide the automotive industry and KAMAZ in particular with the most innovative types of steel, which are in no way inferior to their foreign analogues. I am sure that our partnership with KAMAZ will go from strength to strength and provide ever more benefits to both companies”.
“MMK is one of our company's strategic partners in the supply of rolled metal products. Today, the long-term successful cooperation of our companies receives a fresh impetus,” the CEO of KAMAZ Sergey Kogogin commented on the results of the meeting. “The efforts of KAMAZ engineers are aimed at the active development of the K5 line which consists of premium cars, therefore it is important to be confident in the quality of metal and the reliability of the supplier. Thanks to the implementation of the “Localisation – Wave 2” programme, the parts of the new cabin will be manufactured from Magnitogorsk steel, which is a solid basis for ensuring the high quality of KAMAZ vehicles of the K5 generation. In addition, with the assistance of MMK, our company is taking another step towards import substitution, which is very important nowadays”.