Severstal Distribution increases profits

In 2016, Severstal Distribution, a group with a network of warehouses in Russia, Ukraine, Belarus and European countries, increased its sales by 6 percent, to the level of 1,545 million tons. The volume of processed steel increased to 333,000 tons on an annualized basis.

Despite its own production facilities, sales networks, the company cooperates with independent partners, which made it possible to ensure the fulfillment of complex customer orders. The efficiency of logistics activities was increased by the introduction of new routes, for example, in deliveries by means of water transport in the Volga Federal District in Russia, or in deliveries to Central European countries through ports in Poland.

The company's distribution network quickly responded to changes in market demand by building stocks in warehouses to provide customers with access to ferrous products. In 2016, the Severstal Russia Distribution Department reduced the production costs of the product by 4 percent compared to 2015.