Severstal Distribution supported EBITDA

In the first quarter of this year, the Severstal Distribution Group achieved EBITDA of $ 8 million, despite the fall in prices for steel products, in the reporting period EBITDA is maintained at the level of the first quarter of 2015.

Severstal Distribution Group's revenue for the first three months of 2016 was $ 132 million, which is 4 percent less than in the same period last year. Steel prices stayed low until March 2016, but with an 18 percent increase in sales volumes, they managed to get such a minimal drop in revenues.

Sales of high value-added products, including services offered to customers, delivery, and a number of related services in cooperation with other companies, had a significant positive impact on revenue and EBITDA. In May, Severstal installed a new fully automated cold rolling mill at its Cherepovets plant, which will increase the plant's production capacity by 200,000 tonnes per year, almost one-fifth.

These products will be intended primarily for the automotive industry, home appliance manufacturers and the construction industry. The first delivery went to the Gorky Automobile Plant, which belongs to the GAZ group. Since the beginning of June, Severstal Russian Steel has also acquired a new CEO. This is Vadim Germanov, who previously headed the maintenance and service department.