Magnitogorsk Iron & Steel Works has signed an agreement of intent
and cooperation with Turkeyís Coskunoz Holding Group.
A formal signing ceremony for the deal between
Turkey's largest manufacturer of automotive components and stamping
equipment and Russia's leading producer of rolled metal products took
place at the head office of Coskunoz Holding in Bursa, Turkey.
The agreement opens new opportunities for the
companiesí collaboration in both Turkey and Russia, providing
opportunities for the development of hot stamping production in
Russia, as well as for the implementation of joint engineering
research and work on prototyping of stamped products from new
generation steel, developed by MMK. Cooperation between the companies
will strengthen the position of both parties in the Russian market.
MMK and Coskunoz already have a successful joint
business in Russia: the Service Metal Centre (SMC) of
MMK-Coskunoz-Alabuga LLC operates on Alabuga Special Economic Zone
territory in the Republic of Tatarstan. Launched in May 2018, the
plant produces steel billets (blanks) used in creating components for
cars and appliances. MMK-Coskunoz-Alabuga LLC is a successful example
of business integration at all stages of the production process: from
raw material production to finished product output and steel
localisation in Russia.
Pavel Shilyaev, CEO of MMK, noted the importance
of MMK's strategic partnership in the automotive industry with
Coskunoz, which has many years of experience in manufacturing
stamping tooling and prototype parts. MMK's share in the total supply
of steel products to Russian car manufacturers is more than 50%, and
the Company plans to expand its product line for the automotive
industry and other industrial sectors as part of further cooperation
CEO of Coskunoz Holding Erdem Adjay, commenting on
the cooperation agreement said: "Russia is a strategically
important region for Coskunozís positioning in global markets. MMK
has serious investments in Turkey and great development potential.
The partnership with MMK, the strongest player in the market, and our
mutual synergy will enable Coskunoz to strengthen its position in the
Russian automotive industry market".
Magnitogorsk Iron & Steel Works is one
of the world's largest steel producers and holds leading positions
among Russian steel companies. The Company's assets in Russia
represent a large steelmaking complex with a full production cycle,
from preparation of iron ore to production of downstream products.
MMK produces a wide range of steel products with a predominant share
of premium products. In 2020, MMK Group produced 11.6 million tonnes
of steel and sold 10.8 million tonnes of steel products. MMK Groupís
revenue for 2020 was $6.935 billion, EBITDA - $1.492 billion.
Coskunoz Holding combines 13 companies in
the automotive, defence and aviation, ecology, information technology
and logistics sectors. The Company invests abroad to increase its
global presence. In addition to Turkey and Russia, the Company
produces automotive components in Romania. To date, Coskunoz has
invested a total of EUR 60 million in the Russian economy and plans
to make EUR 15 million worth of additional investments by the end of