The Council reviewed year's results of the 2002 program and outlined main lines of its long term program for 2003-2004.

The latter involves effective cooperation in manufacturing. First of all, it concerns mastering new grades of steel for the automotive production. For example, test lots of sheet with alumosiliceous coating and rolled steel of IF grades were tested for painting and stamping. Hot dip galvanizing sheet is being shipped for the production of corrosion resistant parts of UAZ 3160 and 3162.

At the next step the company will produce microalloyed steel. Products made out of this steel don't require additional processing (such as tempering by the car-makers).

UAZ already intends to produce components of microalloyed steel for other car-making companies. This desire has been already supported by a VAZ order.  It's expected that Severstal will receive the description of the range of products and technical requirements from UAZ in the first quarter of 2003. It will shortly begin working with test lots of these products, which are extensively used by international car-makers in place of traditional materials.

According to a contract, shipments from Severstal to UAZ will go from 65,000 in 2002 up to 115,000 tonnes in 2003.

Viktor Klochai, UAZ' general director, stated that it was largely due to a switch to a higher quality metal, supplied by Severstal. Our export program, also implies 30% growth.