Sollers to use MMK steel for stamped LCV parts
MOSCOW. Oct 30 (Interfax) - PJSC Sollers has agreed to work with Magnitogorsk Iron & Steel Works (MMK) to localize stamping of body and cab parts for Sollers light commercial vehicles (LCV), the Russian automaker said.
Sollers deputy CEO Zoya Kaika and MMK deputy CEO for commerce Sergei Ushakov signed a memorandum on cooperation at the Metal Expo exhibition.
The companies want to develop long-term cooperation on localizing stamping of body and cab parts for the Sollers Atlant and Sollers Argo LCVs. Sollers intends to increase purchases of steel from MMK, which will become the automaker's key supplier.
The companies will set up production of stamped components using only Russian steel, Sollers said. They also plan to cooperate on verification of local brands of steel and fine-tuning the stamping production process. MMK intends to develop its assortment of steel to meet the needs of Sollers' stamping facility.
"Using Russian steel is one of the most important, economically significant advantages that the localization of stamped body and cab parts provides. We expect that the scale of our cooperation with the Magnitogorsk Iron & Steel Works will increase significantly in the next few years thanks to the growth of production of the current Atlant and Argo models, as well as the launch of the next projects to localize stamping for new models of commercial vehicles under the Sollers brand," Kaika was quoted as saying by Sollers' press service.
Working with companies in the auto industry is a priority for MMK in terms of both production and sales, Ushakov said in the press release. "The agreement with Sollers is another step in the direction of localizing automobile production in Russia," he said.
The first serial batch of MMK steel is scheduled to be delivered to Sollers' local stamping partner in November. Stamping of Sollers body and cab parts will be launched ahead of schedule before the end of the year, the company said.
The project involves localizing the process of stamping about 120 body and cab parts and controlling the geometry of produced components. Overall production for the Atlant and Argo models will total up to 40,000 components per year.
