Severstal Distribution increased sales by 8% in the first half of 2020
Severstal Distribution increased sales by 8% in the first half of 2020
Severstal Distribution Group of Companies (the distribution network of the Severstal Russian Steel Division) in the first half of 2020 increased sales by 8% year-on-year, to 1.3 million tonnes.
In the second quarter of this year, all markets where the distribution network was present saw a decline in consumption amid restrictive measures to counter the spread of coronavirus infection. Severstal Distribution is a part of the continuous production chain of PJSC Severstal: all branches and service centers of Severstal Distribution in Russia and Europe in January-June 2020 processed and shipped metal products in a regular mode, subject to additional safety measures. This allowed the distribution network enterprises to maintain the level of sales, as well as to promptly respond to its recovery in May-June. SeverstalDistribution's sales in Russia in January-June 2020 increased to 580 thousand tonnes, which is 4% more than in the first half of last year. The main growth factors were the expansion of warehouse space due to the acquired warehouse complex in Vologda at the end of 2019, as well as the launch of an additional slitting line for coiled steel at the company's service center in Cherepovets.
“We have created a large distribution center in Vologda to promptly supply our regional warehouses with rolled metal, as well as for the development of processing in the Cherepovets SMC. This year Severstal