Today the Magnitogorsk Iron and Steel Works OJSC (OJSC MMK) and the KAMZ OJSC have signed a strategic partnership agreement.

The document signed by the top managers of the two companies, Victor Rashnikov, Chairman of the OJSC MMK Board of Directors, and Serguei Kogoguin, CEO of OJSC KAMAZ, maps out the spheres of mutually advantageous cooperation and provides for permanent, long-term trade relations with all the companies of the KAMAZ Group, including the prioritized status of the Group's manufacturing orders and other forms of cooperation.

The parties have confirmed that to date the two companies have accumulated great intellectual potential and positive experience in broadening their respective product ranges. They have agreed on developing a joint program for adopting new types of products and holding coordination councils. In line with the agreements reached a joint task team will be set up for solving technical issues and assessing the feasibility of OJSC MMK's producing the entire range of rolled steel used by the KAMAZ Group companies.

In the past Mr.Rashnikov has repeatedly underlined the priority and long-term significance of the domestic market for the company's sales policy. Currently MMK delivers about 10% of its domestic industry-specific shipments to the automotive sector, where OJSC KAMAZ occupies a predominant position with its 24% share of the total steel shipments. In 2006 MMK shipped 133,000 metric tons of steel products to the KAMAZ Group, and in the first half of 2007, 83,000 tons.

Strengthened business relations of the OJSC MMK with the KAMAZ Group will enhance MMK's competitive edge and expand its presence on the Russian steel market.