Severstal Distribution Group of Companies (the distribution network of the Severstal Russian Steel Division) in 9 months of 2020 increased its sales on the markets of Russia, Belarus and Europe by 11% compared to the same period last year - up to 2.2 million tons. All branches and steel service centers of the company in Russia and Europe continue to operate normally in compliance with antiviral safety measures.
Sales of Severstal Distribution in Russia in the first 9 months of 2020 reached one million tonnes. Key drivers of sales growth are the creation of a warehouse distribution center in Vologda, the launch of new equipment at the VSMC in Cherepovets, as well as the launch of a program to develop sales in the small and medium-sized business segment, the pilot of which was launched in the Moscow branch of the company.
“Typical for the market periods of seasonal shortages this year were exacerbated by sharp fluctuations in supply and demand due to the impact of Covid-19. By creating a hub in Vologda, we improved the supply of our regional branches and increased sales from Russian warehouses by 9% compared to the same period last year, '' says the head the distribution network of the Severstal Russian Steel division Timur Yudichev. - In Moscow, we have launched a smart program for the development of sales to small and medium-sized businesses, within the framework of which we ensure the constant availability of basic assortments in the warehouse for various niches of metal consumption. Thanks to it, sales of warehouses in Moscow increased by 20% in the reporting period. ”
SIA“ Severstal Distributio ”sales to European countries in the first nine months of 2020 reached 1.1 million tons. The company kept the volume of supplies to the Baltic countries, Finland, Poland, the Czech Republic and Slovakia at the level of 2019, the increase was achieved due to the development of supplies of metal products to Germany, Belgium, the Netherlands.
For 9 months of 2020, the Severstal Distribution group of companies increased the volume of sales of products with processing by 14% - to almost 300 thousand tons. In Russia, the growth was achieved thanks to the installation of an additional line for longitudinal cutting; in general, the volume of finished products of the SMC in Cherepovets increased by 6%. In Europe, the company focused on flat products processing and increased production at SMC in Riga by 12%, mainly due to the development of sales of hot-rolled sheets up to 12 mm thick. In addition, the Severstal Distribution group of companies continues to expand its network of partners in metal processing in the regions of Russia, as well as in Western and Central Europe.
“We strive to provide our customers with the most complete set of standard and pre-processed products from our main product range ... In order to carry out complex sales in 2018, we also began deliveries of stainless steel rolled products produced at Severstal's facilities from imported slabs. Since the products are in demand, this year our Slovenian partner, the manufacturer of stainless steel rolled products SIJ Acroi group, passed accreditation and we received the right to supply its products to the enterprises of the Russian nuclear industry ", - emphasized Timur Yudichev.