PAO Severstal, one of the world's leading vertically integrated steel and mining companies, shipped 2.9 million tonnes of steel products to Russian builders in the first half of 2019, which is 16% more than the same period last year.
This year, Severstal changed its organizational structure to provide an excellent customer experience. In particular, an industry team “Construction” was created specifically for the needs of customers from the construction industry, which focused on the supply of metal products and innovative solutions to construction companies, manufacturers of building materials, components and metal structures.
“This year we have concentrated on work with end consumers, restructured their relationships with metal traders in order to build a network of partnerships with metal recyclers capable of providing the service and service required for the end consumer. Another area of our work is the development of our own distribution network as the main tool for providing construction companies with additional services. The third focus is the promotion of solutions and joint projects with the company's clients. So, now, combining metallurgical knowledge and construction competencies of a partner, a project for the construction of parking lots is being worked out using the technology of Severstal Steel Solutions, - said Evgeny Chernyakov, director of work with companies in the construction industry of Severstal.
Increase in supplies to I half of the year was facilitated by the expansion of the sales geography and the development of integrated logistics capabilities. For example, Severstal Steel Solutions carried out the longest-distance delivery of steel structures for the construction of a refrigerator warehouse for storing frozen fish products in Petropavlovsk-Kamchatsky. The direct distance from the Oryol production site to the facility was 7,200 km. The delivery of structures to the construction site was carried out 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 polymer coating produced under the brands “Steel Silk”, “Steel Barkhat” and Steel Cashmere grew by 51% in the first six months. In the spring of this year, Severstal began supplying polyurethane-coated metal products under the SeverFarm brand for the construction of facilities for the construction of large-scale offshore facilities for OOO NOVATEK-Murmansk in the Murmansk region.
Deliveries have also grown due to an increased focus on small end-users and a related increase in sales through our own distribution network. In the first half of the year, deliveries of Severstal Distribution to Russia increased by more than 25% - up to 550 thousand tons of metal products. Sales were 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.