Severstal has signed a four-month contract to deliver rolled steel to Renault-Nissan from its Cherepovets Mill (CherMK).

The steel will be used in car production at the Moscow and Togliatti plants of the Renault-Nissan and AvtoVAZ Alliance.

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Severstal will meet 83% of the demand from its two factories in Russia.

Severstal’s Cherepovets Steel Mill also continues to supply steel to GM Uzbekistan for production of Daewoo and Chevrolet cars in a one-year contract that started in January this year.

Severstal is GM Uzbekistan’s primary supplier of rolled steel. In 2014 the company supplied more than 60% of GM Uzbekistan’s steel consumption.

Since the beginning of 2015, Severstal has been delivering rolled steel to Volkswagen Group Rus in a one-year contract.

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Metal blanks are produced at Severstal-Gonvarri-Kaluga – a joint venture between Severstal and Spanish company Gonvarri – while pressed parts are produced at Gestamp-Severstal-Kaluga – a joint venture between Gestamp and Severstal.

In 2014, Severstal began supplying hot-dip galvanized steel for making car parts for the Volkswagen Polo Sedan model which are assembled at Volkswagen Group Rus’s facilities in Kaluga.

“This year CherMK is implementing an investment project to renovate a four-stand cold rolling mill to ensure we continue to meet and exceed automakers’ requirements and demands,” said Severstal head of sales and marketing, Dmitry Gorshkov.

“This will enable us to produce rolled steel of greater width which will optimise the steel sheet for the car part production process.”