OJSC Magnitogorsk Iron and Steel Works ("MMK" or "the Company") announces that representatives of DAIMLER KAMAZ RUS (DK RUS) have completed their first technical audit of MMK’s metal products in Magnitogorsk.

During the audit, the German specialists reviewed MMK’s production processes and the specifications of the Company’s metal, primarily at its cold-rolling, hot-dip galvanizing and pickling facilities.

Currently, DK RUS – a joint-venture between Daimler Group and KAMAZ – is interested in finding a Russian supplier of automotive sheet for its new generation KAMAZ trucks, which are due to go into production at Naberezhnye Chelny in late 2017 - early 2018. This automotive sheet needs to be completely aligned with European standards, and quality of the end products will be controlled by the company’s specialists based on Daimler AG’s rigorous requirements. Before the launch of the joint Russian-German project, numerous tests will be carried out in Germany to check virtually all components of the new truck model.

Jurgen Olberding, COO of DK RUS, commented:
“I am positively surprised by the high motivation and dedication of MMK’s team. All questions have been answered including ones which were not in the agenda. Our technical experts could access all necessary documentation. I am personally happy to have done the trip to Magnitogorsk to get a direct feeling about the company. I appreciated the strong interest of MMK’s top management in working with Daimler. I hope that our mutual efforts will bring Daimler Kamaz Rus to the level of Daimler Germany and possibly a little bit higher!”

Pavel Shilyaev, CEO of MMK, said:
“We welcome the start of our engagement with this automotive group, which initiated a major important joint project between Russia and Germany aimed at producing trucks in Russia. MMK is open for cooperation, and our production and technological base allows us to produce automotive sheet in full compliance with our customers’ needs. We are focused on expanding our consumer base and meeting the expectations of our consumers both in terms of product quality and client service.”

“MMK is currently the leading ferrous metal supplier for the Russian automotive industry. Also, we continue to work on acceptance of our rolled metal by producers of foreign automobiles in Russia: ÌÌÊhas adopted new production methods enabling the Company to produce more than 50 steel grades in line with European requirements.”

Communications Department