Severstal joint stock company and UAZ (Uliyanovsk Automotive plant), a Severstal subsidiary, signed a program of cooperation for 2002.

According to the program, Severstal sales to this automotive company are up 50%. In 2002, the program prescribes growth of sales of rolled steel, especially with zinc coating, joist web and other types of products.

The program was signed at the meeting of a two companies coordinating council held at UAZ. The council discussed joint activities of Severstal and UAZ in 2001 on the range of technical and commercial issues.

"Two important documents were signed that will help enhance and develop our strategic partnership. They were the program of technical cooperation and the coordinating council's minutes which reflect technical and commercial aspects of future cooperation," said Dmitry Goroshkov, Severstal sales director.

In order to improve servicing of sales to UAZ a decision was made to open a consignment warehouse in Ulyianovsk. The timing of its opening will be set by the end of April.

Other measures which assure smooth supply to Ulyianovsk include shipment of metal by waterways. First shipments will begin in May of this year. At first 10-20% of steel will be shipped. If this way of transportation proves to be efficient, all metal for UAZ will be shipped.

According to Dmitry Goroshkov, Severstal has positive experience with shipment of steel by waterways. In the fall of last year Severstal shipped steel to VAZ. "We are speaking of the thousands of tones of steel shipped during the navigation period," said Goroshkov.

One of the important decisions of the commercial nature was the agreement to change prices no more frequent that every half a year.