Severstal and Sollers sign a cooperation agreement for 2011

Severstal has signed an agreement with Sollers automotive group, which currently owns 67.77% of the ordinary stock in OJSC Ulyanovsk Automobile Plant (UAZ). The agreement defines the reference prices and supply volumes for hot rolled, cold rolled and coated metal-roll products and electric-welded pipes made by the Cherepovets Steel Mill for 2011 in accordance with Sollers’ annual demand. The starting values of indices are defined and fixed, with provisions made for adjustments of the reference prices during 2011 in accordance with an agreed procedure.

Severstal will also continue its cooperation with UAZ, to provide additional services, one of them being Severstal’s [continued] sponsorship of UAZ’s consignment warehouse.

Furthermore, as a result of this agreement with Sollers, a joint working group has been established whose objective will be to reduce costs. In particular, this applies to unifying the steel grades and dimensions of products shipped to UAZ.