Managers of the NSC technical department (Japan) and the manufacturing projects unit (Moscow office) will explore opportunities for developing a two-way relationship with Severstal. NSC representatives will meet with Anatoly Kruchinin, Severstal's general director, other top managers, company staff and manufacturing units' supervisors.

They will also discuss results of benchmarking and possibilities of cooperation in new technologies development. The two parties will touch upon results of testing of by-product plant coke oven batteries. NSC had done these jobs, totaling US $ 180,000 in 2001-2002. As a result of the NSC' involvement, Severstal has gained access to a new method of testing the state of coke oven batteries and a package of recommendations to follow up on their performance.

Japanese experts are interested in discussing the Equipment Maintenance Management System, which they have presented to Severstal's managers. Japanese experience was of interest to Severstal, as it has been working on improving the system of servicing main production equipment by setting up servicing blocks.

The parties will also exchange experience in using Total Quality Control (TQC), which is incorporated within the framework of the In-house consulting project and Total Quality Management (TQM).

Severstal's managers have visited the NSC daughter company in Kitakyusyu in August 2002. They toured blast furnaces, steel-melting, steel rolling and refractory products plants and were acquainted with the quality management system and quality groups in various company units. This delegation included representatives of the strategic planning and technical business units. They have discussed opportunities of arranging a visit of another delegation of top managers to NSC.

Anatoly Kruchinin, Severstal's general director, noted that Severstal should draw from the best world practice in steel making. "The company will continue to cooperate with Nippon Steel Corporation in the area of new technology development, as well as on issues, relating to improving the quality management system at Severstal," said Kruchinin.