At present, Russia is actively creating new sorts and bettering the standard of present steel merchandise for the automotive trade. However Russian carmakers stress that localization and import substitution of their trade is at an early stage.

The issues and prospects of this course of have been mentioned at the moment in the course of the assembly of the working group on the Intersectoral Program for the Growth of New Varieties and High quality Enchancment of Steel Merchandise for the Automotive Business for the Interval 2018-2023 (MOP).


Hire hire disputes


Dmitry Ruzaev, head of the Materials Engineering Division of AvtovVAZ JSC Analysis and Growth Heart, said that for the previous 20 years, within the automotive trade, opposite to the opinion of skeptics, they’ve been concerned in import substitution to 1 diploma or one other: what they’d to purchase both how dominated in Russia. Nonetheless, we should admit that about 75% of posts don’t obtain analogues within the Russian Federation. One of many important causes is overseas tools and overseas supplies used within the manufacture of elements.


At present, based on consultants, there aren’t any difficulties for automakers within the subject of flat merchandise, that are dominated within the Russian Federation. On the similar time, as a result of enormous home demand for high-strength rolled merchandise, AvtoVAZ needed to flip to overseas producers.


As well as, even earlier than the beginning of particular operations, the corporate carried out loads of work on the evaluation of the home market. Due to this fact, AvtoVAZ discovered that the native producer meets the declared specs when it comes to lengthy merchandise, nonetheless, given the present financial occasions, this grade stays unclaimed.


“On the similar time, there may be an outdated drawback related to the so-called” small tonnage “. There are some positions which can be actually “cease” positions for us at the moment. And we’re actually solely standing due to the dearth of sure positions, as a result of very it’s troublesome to resolve procurement issues, logistics issues, and many others., “stated Dmitry Ruzaev.


For instance, consultants point out on this context the entrance suspension spring. Onerous tempered wire for his or her manufacturing is purchased from China and Korea; there isn’t any analogue within the Russian Federation.


“At present, actually from the start of navy operations, producers have begun to grasp the manufacturing of suspension springs utilizing the chilly casting technique. And right here there are a number of issues: firstly, it is vitally troublesome to make the rolled steel itself, and secondly, what’s produced have to be examined for sturdiness. The provider has to, in reality, create a brand new design after which run it for a very long time, tiring, which takes time,” complained Dmitry Ruzaev.


Now AvtoVAZ has two Russian suppliers and producers of springs – OOO UPZ from Magnitogorsk and OOO NPT from Izhevsk. One other one underneath approval. However up to now, based on consultants, the automotive manufacturing facility continues to be utilizing exported rolled merchandise.


“The issue that the producer “sits” on imports additionally applies to the mass place. Just lately, the breakdown of such elements, which even have excessive necessities for sturdiness, has change into extra frequent. This means the likelihood that suppliers of rolled steel refuse to provide element producers, ” added Dmitry Ruzaev.


There may be an acute difficulty of parts, the producer of which isn’t within the Russian Federation in any respect. For instance, spring clamps on automotive engines and methods. Furthermore, it turned clear that up to now in Russia there isn’t any materials for the manufacturing of such elements. Because of this, nobody did the costly work.


Severstal took over the market


In the meantime, Severstal is extending assist to automotive makers. The corporate took on the duty of manufacturing a substitute for the three 1.25 mm thick metal-polymer-metal layers, which have been equipped from Sweden and used within the manufacturing of the Lada 4×4 cylinder head cowl.


“The issue is that if we use different, standard leases, the noise stage emitted by the automotive will exceed. This may result in a ban on the sale of such automobiles in Russia, based on the regulation. Sadly, we’ve not discovered something but, however we hope Severstal’s progressive growth will assist us,” Dmitry Ruzaev sums up.


One other necessary difficulty from the viewpoint of import substitution within the automotive trade is the transition from Swedish Hoganas merchandise to Severstal steel powders.


“Numerous time was spent, however we managed to get a optimistic conclusion. We’re presently in growth for different forms of elements made of comparable supplies. We should truthfully admit that the manufacturing isn’t primarily based on the identical expertise, we don’t have such a provider. The primary purpose: to discover a powder much like Hoganas in China. After which see what we are able to “squeeze” out of Severstal powder,” stated Dmitry Ruzaev.


Sergey Manegin, Deputy Basic Director of Manufacturing at TsNIIChermet, said that in the mean time Severstal is the one producer of steel powder trade that exists in Russia.


“We understand that there isn’t any speedy resolution and no means out of this example. And the capping technique will be unable to resolve it. We have to discover new technological options. It’s essential to depend on what Severstal has when it comes to output, sharpen expertise, assist them and obtain qualitative indicators. It’s obligatory to begin creating a brand new powder primarily based on Severstal, the outdated expertise has disappeared. Severstal alone is attempting to revive manufacturing, and so they need assistance, to not anticipate tomorrow’s resolution, however to seek out mutual leverage,” he stated.


Oleg Kozhnikov, consultant of Severstal PJSC, emphasised that the corporate has been producing powder since 1991. On the similar time, the division of the market between Severstal and Hoganas is clearly seen. “And after they go away, the query arises as to what to do with it. We don’t have our personal tools, though beforehand we had growth with NIIchermet. Now the competence is gone,” he stated.


Severstal got here up with its personal expertise. Sufficiently pure ore provides plastic powder. And on this foundation, a method was invented to spray forged iron with air into water. The consultant of the Russian firm emphasised that their growth is completely different from the Swedish model.


“At one time, we carried out an evaluation of what we have been going to do subsequent. It seems that our producers use a median of 2-3 kg of powder in automobiles, whereas Western producers use about 10 kg. The potential is about 200%. And we’re working on this route,” stated Oleg Kozhnikov.


Import substitution vs “substitution by China”


In an unique remark to Knowledgeable, Dmitry Ruzaev said that the primary drawback that Russia has not been capable of remedy for many years and that’s slowing down the whole automotive trade is the dearth of obligatory supplies.


“We have already got ready-made parts and ample native capability. The problem is that they make it from imported uncooked supplies. As well as, right now, virtually everybody has left the market, solely us and GAZ stay for producers. The sort of manufacturing is advanced, and even when we are going to learn to do all the things in Russia without delay, it will likely be unprofitable for a small variety of consumers to retailer it,” he stated.


The knowledgeable recalled that the automotive market in Russia was too small for a similar metallurgical enterprise.


“And nobody needs to vary that. Because of this, we switched from European imports to China. We virtually don’t have any parallel imports, as a result of everybody is aware of the place the product goes. We’re creating a brand new route, we’re Iran and India. The merchandise bought are of various high quality. If we need to take it underneath our job and adapt it, we’d like cash. And who’s ? In good instances, our utilization is lower than 5%. Although in Europe, that is the smallest enterprise. Everyone seems to be chasing the auto trade on their again legs, with us quite the opposite. Then again, the automotive trade itself is necessary. Its presence will increase the nation’s technological independence. Typically, there are nonetheless many questions and work,” concluded the consultant of AvtoVAZ.


It’s hoped that the varied industries will quickly attain an understanding and meet one another midway. In reality, in any other case, import substitution will flip into “alternative by China”, and our personal growth will proceed to stall.

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