Chusovoy Metallurgical Works Clears PAO KAMAZ Audit

Chusovoy Metallurgical Works (AO CMW, Perm Territory, a United Metallurgical Company (AO OMK, Moscow) subsidiary) has completed an audit for compliance with the requirements PAO KAMAZ levies on its spring suppliers.

This year, Chusovoy Metallurgical Works upheld its compliance status vis-à-vis the IATF 16949 International Standard. This certificate is evidence of CMW's standing as a reliable supplier. The auditors also noted the significant part played by the introduction of a production system that enables Chusovoy Metallurgical Works to increase production efficiency and product quality.

“Chusovoy Metallurgical Works is a national leader in the manufacture of springs and the principal supplier of the KamAZ truck brand. Established communication lines to customers help enhance the level of customer satisfaction and expand the product line”, noted AO CMW Managing Director Vladimir Kirzner.

BACKGROUND:

Chusovoy Metallurgical Works is a Russian market leader in springs for trucks and public transportation vehicles. CMW delivers its product to all the automotive manufacturers in the country: KAMAZ, GAZ, URAL, UAZ, NEFAZ, and others. The facility produces springs of over 400 different types and sizes. The facility also has the capability to manufacture over 100 types of springs for imported vehicles.

The entire current product line of CMW springs for domestic and imported vehicles, including product under the new Springer brand, is available from the online store at market.omk.ru.

OMK implements projects at the manufacturing facility designed to build up capacity and improve spring quality. In particular, over 500,000 rubles have been invested into capital repairs and the remodeling of the manufacturing facility’s buildings and structures since 2015. The money was spent on improving safety in the workplace, among other things, on upgrading workstations, and sanitation and auxiliary spaces. In 2019, the facility intends to commission a new rolling mill to produce parabolic leaf springs. Once it is commissioned, the quality of the springs both for imports and for the most advanced domestic makes will be much improved and their output will almost double. The estimated amount to be invested is 300,000,000 rubles.

Another CMW upgrade investment project involves the procurement and installation of some new shot blasting equipment to improve spring longevity and surface condition and is also scheduled to be completed in 2018.

OMK's investment into CMW upgrades is designed to improve quality and acquire capabilities for new product and also helps improve the employees’ general financial situation. Since 2014, average wages have grown 26%, and in 2017 were higher than the average in the Perm Territory for the first time. Losses became a thing of the distant past because the company has been operating in the black since 2015. Increased production has enabled the facility to hire over 100 recent graduates since the beginning of the year. The facility still has unfilled vacancies and is looking for personnel skilled in the metallurgical field.