14:10, 14 February 2023

Severstal Records Sales in New Partnership Scheme

Severstal, a Metal-Expo regular exhibitor, sold more than 48 thousand tons of rolled metal under the partner scheme in 2022, which is almost 2.5 times higher than in 2021.

This is a new scheme of work, where Severstal becomes a supplier of finished products from its own rolled metal, bears full responsibility for the quality and guarantees the financial stability of the transaction to both the customer and the manufacturing partner.

Severstal has started implementing partner sales since 2020 for the first time in the practice of Russian metallurgy. The new scheme of work demonstrates its effectiveness and potential for further development in the implementation of infrastructure projects in various sectors of the economy. This scheme of work is beneficial to everyone. Severstal gets the opportunity to master the production of new types of products and enter new markets. For partner companies, this is the prospect of large orders under the responsibility of a large company. The customer is provided with a high level of guarantees of order fulfillment in terms of quality and timing. We intend to further scale the experience of partner sales by applying the established schemes with new customers," said Dmitry Goroshkov, Director of Work with Energy Companies and Infrastructure Projects at Severstal.

The partner sales scheme has a significant potential in the construction of port infrastructure facilities. For example, in 2022 Severstal completed a comprehensive supply of pipe shunt and piles in the amount of about 5 thousand tons to the end customer of Severnaya Zvezda LLC for the construction of a berth of a marine coal terminal based on the Syradasayskoye field on the Taimyr Peninsula. Another major project is being implemented in the North-Western Federal District. Severstal, using a partner sales scheme, supplies not only pipe shunt and piles for its construction, but also metal structures and dustproof screens with a total volume of 8 thousand tons.

In 2022, Severstal significantly increased the supply of shelving structures for the logistics infrastructure of large marketplaces. One of the largest deliveries was made to e-commerce in the amount of 15 thousand tons. In the near future, another delivery of ready-made racks for 10 thousand tons is planned. Severstal provides turnkey production of shelving systems: from the production of rolled metal at the Cherepovets Metallurgical Combine (part of PJSC Severstal) and the production of racks at the partner's facilities to the delivery and installation of finished products to the customer.

According to the partner scheme, 1,900 tons of load–bearing profiled sheet with polymer coating H144 and H90 were delivered to KASTAMONU (LLC Kastamonu Integrated Wood Industry), a leading manufacturer from the woodworking industry. The profiled sheet was shipped to a plant for the production of chipboard (chipboard), located in the special economic zone "Alabuga".

Another area of partner sales is the supply of support structures. Among the landmark projects of last year is the supply of dual-use supports that will be used to place cellular communication equipment on Sakhalin Island. Almost all methods were used to deliver the supports: container transportation, motor transport, rail transport and even a ferry to Yuzhno-Sakhalinsk. Similar dual-use supports were also supplied to the Central and Southern regions of Russia.

In the summer of 2022, deliveries of lighting poles for the construction of a bypass route in Togliatti began. In total, more than 2 thousand supports will be delivered. The supports are made of hot-rolled sheet metal produced at mills 2000 and 2800 of the Cherepovets Metallurgical Combine. The processor is the company "Elektrostart" from the Moscow region, which provides the delivery of finished supports by road.

Last year, within the framework of the partner scheme, Severstal successfully began supplying a new type of product - steel oil tanks and tanks for storing sunflower oil. The Saratov Tank Metal Structures Plant (JSC Saratov RMK Plant) participates in the partner scheme. This is a successful example of mutually beneficial cooperation, which allowed Severstal to gain a foothold in a new niche.

"The ASTON-Volga Region company acted as a customer for the supply of finished products - steel tanks for storing sunflower oil. When choosing a supplier, the decisive factor was the combination of the tank manufacturer – Saratov RMK Plant and the metal manufacturer – Severstal. This combination made it possible to neutralize all possible risks. Severstal offered its technical expertise in the production of rolled metal, acted as a guarantor of quality and compliance with delivery deadlines, ensured the financial security of the transaction regardless of market conditions," said Andrey Galaburdin, Procurement Director of ASTON.

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