OJSC Magnitogorsk Iron and Steel Works ("MMK" or “Company”) reports that it has been named as a steel supplier for Ford cars produced in Russia. MMK is successfully completing the acceptance process for its steel plate with Ford Sollers Holding, Ford carmaker in Russia, and is increasing supplies of automotive sheet to the corporation.

Currently, two items ofultralow-carbon steel invarious drawing categories used in the production of car body parts (including the front) for FordFocus,have been fully accepted. High-duty ultralow-carbon steel for Ford Focus hoods is at the pilot batch approval stage. MMK also expects several items of ultralow-carbon steel for the production of FordKugaand FordExplorer parts to be accepted. Furthermore, the Company aims to produce and supply the car manufacturer with high-density microalloyedand dual-phase steel both with galvanised coating and as a cold-rolled uncoated product.

MMK and Ford Sollers Holdinghave been cooperating on automotive sheet production localisation since 2010. This process involves phase-by-phase metal acceptance. During the first phase, the car maker receives special qualification sheets for the metal products it plans to purchase from MMK. These include a full overview of current production of each relevant steel grade including its key specifications and operational statistics. Following approval, Ford then places an order for a small pilot batch, usually of less than five tonnes. Provided the pilot batch receives positive reviews, Ford then places an order for a bigger pilot batch. If this pilot batch is approved, the parties then agree on commercial supplies of accepted metal.

Communications Department