December 03, 2008

AVTOVAZ looking for strategic investor among Russian steel makers

RBC reported that Russian auto major AVTOVAZ is not content with just being a partner of foreign carmakers and is looking for a strategic investor among Russian metal companies. Such an investor would be granted orders from AVTOVAZ.

On August 21st 2007 a high ranking Rosoboronexport representative divulged that AVTOVAZ was considering Russian metal companies as possible strategic investors without giving the exact names. Analysts believe that Magnitogorsk Iron and Steel Works is the most likely candidate.

Earlier Mr Sergei Chemezov chairman of AVTOVAZ's board of directors and GD of Rosoboronexport had said that the plant was willing to sell a blocking stake to a strategic investor and was in talks with Magna, Renault, FIAT and Porsche.

AVTOVAZ is currently the customer of several Russian steel makers including MMK, Severstal and Novolipetsk Steel.