OREANDA-NEWS. July 15, 2011. “We need to expand the realm of possibilities open to public organisations and small parties, enabling them to put forward their representatives and their concepts for how the municipality, region or nation, and the relevant levels of power and management should develop. That is why I proposed that we establish the Popular Front, which has the potential to become just such a broad platform – where people can present their ideas as well as the people who generated these ideas, giving them the chance to advocate them via United Russia’s existing channels to these power structures.”
Vladimir Putin
During his talks with workers at Magnitogorsk Iron & Steel Works

Transcript of the beginning of the meeting:

Vladimir Putin: Good afternoon. I will take a place where it is comfortable to speak with you.

I would like to congratulate you on two occasions. The first is Metal Workers Day which is on Sunday officially, but which, as Viktor Rashnikov (director general of the Magnitogorsk Iron & Steel Works) said, steelworkers start celebrating on Friday. I understand this; you celebrate for three days, Friday, Saturday and Sunday. On Sunday you slow down so you can get back to work on Monday.

And the second event, which is clearly very important for the plant, is the commissioning of the new cold rolling complex, Mill 2000. This is a big event for Magnitka and the steel industry generally, as well as for the automotive industry. We would not be able to achieve our goal of increased domestic content in the auto industry to at least 60% or 65%, without the quality sheet metal the plant will now produce at this new mill.

It is economically inexpedient to import enough sheet metal to meet the production requirements we have set for our foreign partners, 300,000 vehicles a year. When you started producing sheet metal at this plant, it changed the economic prospects dramatically. In short, this will benefit the plant and also create highly paid jobs in the steel and auto industries as a whole. The synergy of the mining, steel and engineering industries is a vital achievement. My congratulations on this achievement.

Remarks: Thank you.

Vladimir Putin: This is all I wanted to say in my opening remarks. I think this is enough; I won’t speak at length today. I suggest we talk about your problems.

Who wants to go first?

Pavel Kachurin: Good afternoon, Mr Putin. I’m Pavel Kachurin, a dispatching operator on Sheet Rolling Line 11. This is a happy day for us, as we have commissioned this mill, which is unique in Russia and which will allow us to expand into the highly promising global market of auto body sheet metal. But will foreign automakers provide an opportunity to use the new mill to its full capacity?

Vladimir Putin: I think the automakers will allow us to do what will benefit them. If they will profit from buying your goods, they will do so. The policy of industry does not always coincide with the policy of management bodies or governments. Governments want to create jobs and collect taxes, while producers are interested in an effective operation first. If you roll out competitive goods in terms of price and quality, they will buy them. We have talked with the chief executives of several auto companies who say that their European and American partners are considering using this sheet metal not just at their plants in Russia but also in neighbouring countries where they have plants, because it will be profitable for them. I am confident that this is what they will do.

Next, please.

Vadim Dorofeyev: Good afternoon, Mr Putin.

Vladimir Putin: Good afternoon.

Vadim Dorofeyev: I’m Vadim Dorofeyev, a dispatching operator on Sheet Rolling Line 9. My question concerns the steel industry, which, unfortunately, has been declining in the past few months. In particular, fewer contracts have been signed for the pipes made at Mill 5000, another of our major assets. The question is how can we resolve this problem? And does the government help stabilise the market?

Vladimir Putin: Well, MMK has nothing to complain about in this respect. In 2009, when nearly all other mining, steel and engineering companies were plagued by problems, Magnitka unveiled Mill 5000. If you remember, I attended the ceremony. It was a big event in the country’s steel industry. It should be said that the company’s management, top executives and largest beneficiaries did not cut corners either then or now. They invested USD 1.5 billion in Mill 5000 and USD 1.5 billion in Mill 2000. But it is true that the global economic decline has also affected our industry, our mining and steel companies.