Home / Press Releases / In 2020, Severstal increased the volume of purchases from enterprises of the Vologda Oblast by 3.9 billion rubles.

In 2020, Severstal increased the volume of purchases from enterprises of the Vologda Oblast by 3.9 billion rubles.

Press Releases

PJSC Severstal, one of the world's largest vertically integrated steel and mining companies, in 2020 purchased goods and services from enterprises of the Vologda Region for a total amount of 29.5 billion rubles, which is 15% more than in 2019.

The company signed an agreement on the development of business cooperation in 2020 within the framework of high social responsibility. It was attended by the Government of the Vologda Region, the Urban Development Agency of Cherepovets and large industrial enterprises of the city.

According to Sergey Dobrodeya, Repair Director of the Severstal Russian Steel Division, Severstal continued to implement its intentions to develop business cooperation in the region. during the period of restrictions caused by the pandemic. That is why 2020 has become an economically successful year for stakeholders.

“Entrepreneurship and medium-sized businesses today carry a huge potential and support for the development of the economy of the Vologda Oblast. Severstal actively cooperates with small and medium-sized enterprises in the region, participates in their development, and fosters the desire to comply with modern operating principles accepted in the global business community. In 2020, we purchased goods and services from small and medium-sized enterprises of the Vologda region for a total of 15.7 billion rubles, which is 4.1 billion more than in 2019 (36%). At the same time, we increased the volume of purchases from enterprises in Vologda by 500 million rubles, and from Cherepovets by 2.5 billion rubles. I am sure that the enterprises of the region have the potential for development, "- said Sergei Dobrodey.

According to Sergei Dobrodey, the main increase in purchases is associated with the implementation of a large investment program at CherMK, which has affected almost all redistributions of the production chain.

As a reminder, in 2020, CherMK completed the construction of the third blast furnace of the first block of the coke oven battery complex No. 11 with a fundamentally new technology for compaction of the charge. The company invests more than 66 billion rubles in these objects alone. Over the past few years, these are the largest investment projects at Severstal's Nacherepovets site. The company also has a large investment program for the current year.

The level of the annual investment program for 2021 is comparable to the level of the previous year. The company will continue to develop production sites and, in particular, the Cherepovets Metallurgical Plant.

“Investments in facilities located in the Vologda Oblast will amount to 48.97 billion rubles. For comparison, the annual budget of Cherepovets in 2021 is 10.5 billion rubles. In other words, the volume of our investments in the development of production capacities in the region is practically five budgets of our city, ”comments Sergey Dobrodey.

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