Severstal Shipped 2.9 Million Tonnes of Steel to Russian Builders in H1
Severstal shipped 2.9 million tons of metal products to Russian builders in the first half of 2019, which exceeds the same indicators of the previous year by 16%. This year, Severstal has redesigned the organization to provide an excellent customer experience. In particular, the construction team was created specifically for the needs of customers from the construction industry, which focused on the supply of metal products and steel solutions to construction companies, manufacturers of building materials, components and metal structures.
The increase in supplies in the first half of the year was facilitated by the expansion of the geography of sales and the development of integrated logistics capabilities. For example, Severstal Steel Solutions has completed the longest supply of metal structures for the construction of a refrigerated warehouse for storing frozen fish products in the city of Petropavlovsk-Kamchatsky. The direct distance from the Oryol production site to the facility was 7,200 km. The structures were delivered to the construction site in a multimodal way: by road to the container station in Moscow, then by rail to the port of Nakhodka and by sea to the Kamchatka Peninsula.
Sales of rolled products with a polymer coating produced under the brands of Steel Silk, Steel Velvet and Steel Cashmere increased by 51% in the first half year. In the spring of this year, Severstal began supplying polyurethane-coated metal products manufactured under the SeverFarm brand for the construction of facilities for the NOVATEK-Murmansk LLC Center for the Construction of Large-tonnage Marine Structures in the Murmansk Region.
Deliveries also increased due to an increase in focus on small end-users and the associated increase in sales through its own distribution network. In the first half of the year, deliveries of Severstal Distribution JSC in Russia increased by more than 25% - up to 550 thousand tons of metal products. The growth of sales was also facilitated by the conclusion of long-term multi-product agreements with the largest manufacturers of building materials: facades, roofing materials, sandwich panels and other light steel structures.
Source : Strategic Research Institute