MMK to Build New Steel Plant in St. Petersburg

Today Valentina Matvienko, Governor of St.Petersburg, and Victor Rashnikov, President of the MMK Managing Company, signed an Investment Agreement.

According to the document, by 2010 OJKSC MMK intends to build a stamping plant and a service center in St.Peterburg.

Investments in the construction of the stamping plant will total RUB 3 bn.

"At the initial stage, up to 2010, it is expected that that the plant will process a total of 125,000 MT of steel per year. Further on the capacity may be expanded to 300,000 tpy. This project is in line with the strategic priorities of our Company as it will allow to strengthen our presence in the North-West Region, add more value to our products and ensure maximum satisfaction of the customers' needs", said Mr.Rashnikov, who is also Chairman of the Board of Directors of OJSC MMK.

Products of the new plant which will comprise steel sheet blanks, stamped panels, and stamped and welded parts, are intended for the manufacturing of car bodies at the assembly plants of such companies as Ford, Toyota, General Motors, Nissan, etc. which are already in operation or under construction in Russia, and also as components for white goods manufactured in Russia or abroad at the plants of Bosch-Siemens, Electrolux, and others. Products of the new service center will target the construction sector, mechanical engineering, ship-building and other industries in Saint Petersburg and the Leningrad Region. Direct supplies of high quality sheet steel from the Magnitogorsk Iron and Steel Works and their processing at the plant and the service center will provide the synergy required to meet the requirements of steel consumers in the best possible way.

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