MMK has become the biggest metal supplier of Russian automotive

MMK has become the biggest metal supplier of Russian automotive

Vedomosti – Magnitogorsk Metal Combine (MMK) has increased its supply to Russian automotive factories to 215,000 tonnes, following a 20% rise, within the first six months of the year. Thereby, the share of automotive in the company’s total production has risen by a point, to 3.9%.

The sectoral experts draw attention to the fact that the efforts made by foreign car manufacturers to increase localisation, push the supply levels of MMK upwards, despite the shrinkage in the automobile market. The manufacturers choose to make purchases domestically, in order to avoid the exchange rate risks and to fulfil the industrial assembly regime obligations. For instance, 75% of sheet metal used by Ford Sollers is Russian made. The manufacturer intends to increase this rate to 100%.

According to Vedomosti newspaper, other Russian sheet metal manufacturers, such as; NLMK and Severstal, refused to make comments about the amount of supply they made to car manufacturers. Officials from the biggest Russian automobile manufacturer: AVTOVAZ have named MMK, as their biggest sheet metal supplier.