Russian steelmaker Magnitogorsk Iron and Steel Works (MMK) and the government of the Samara Region of Russia have agreed to build a production and logistics centre in Togliatti.

The agreement was signed during the St. Petersburg International Economic Forum (SPIEF). The Governor of the Samara Region Dmitry Azarov, and the chairman of MMK's board of directors, Victor Rashnikov, and CEO Pavel Shilyaev, were all present at the signing of the agreement.

According to Pavel Shilyaev, the Samara Region is a long-standing and reliable partner of MMK. "MMK's modern, innovative metal products are in high demand in the local automotive industry, which is one of the foundations of Russian engineering. The new production and logistics centre will consolidate MMK's strategic partnership with automakers in the region and will allow us to reach a new level of co-operation," he said at the official signing ceremony.

Construction of the centre will start at the end of 2019 and will be completed in Q1 2021.It will accommodate up to 150kt of steel products and, it is claimed, will fully meet the automotive industry’s needs for the supply of MMK's high-quality rolled products. The new facility, claims MMK, will consolidate the company's leading position in the automotive industry’s metal market.