According to Alexander Tumanov, commercial director of Severgal, a lot of hot dip galvanizing steel weighing 200 tonnes, produced by Ekostahl (Germany) was shipped to a car-making plant in Tolyatti. Ekostahl is a part of Arcelor group. The steel was shipped as part of a contract agreement with this company.

This lot of steel will be used in various car components of the tenth family of VAZ cars, including side panels. The latter will undergo three trials - on stamping, welding and painting. Results of testing will be presented at the next coordinating council of Severstal and Avtovaz at the end of December in Tolyatti.

According to Alexander Tumanov, commercial director of Severgal, this is one of the activities at the first stage of a special program, designed to develop domestic market for hot dip galvanizing steel.

At this stage steel from the facilities similar to those of Arcelor will be shipped to key target customers to test both the product itself and the equipment performance.

Shipments of test lots of hot dip galvanizing steel from Arcelor to UAZ are expected in 2003. By the end of testing parties will decide on main grades of steel and will make a plan of regular shipments.

At the second stage shipments will aim at adapting domestic car-makers to the new product. This will allow them to quickly switch to the hot dip galvanized sheet, produced by Severgal galvanizing line by the time it begins its operation.

Severgal Joint Stock Company was registered in the Russian Federation. 75% of the company's shares are owned by Severstal, and 25% by Arcelor.

Severgal will produce hot dip galvanizing sheet with Extragal TM coating for interior and exterior parts of cars. The line will be built at Severstal's industrial site in Cherepovets, Vologda region, by the beginning of 2004.