OREANDA-NEWS. November 09, 2010.  Severstal’s two enterprises that serve the Ukrainian market, Severstal Ukraine and Dnepometiz, initiated a programme to integrate operations from a single production site so as to improve the efficiencies of their businesses.

Severstal Ukraine, a sales enterprise which is part of Severstal Russian Steel, will now operate from the Dneprometiz site, which is part of the Severstal Metiz Group. At the new site, Severstal Ukraine will have two storage areas for indoor (2000 sq. m) and outdoor (3000 sq. m) storage. The total storage area will measure approximately 5000 sq. m. Moving to the Dneprometiz site will also provide Severstal Ukraine with a comprehensive range of transportation and logistical services, including shipment, stock placement and storage.

Oleg Kovtonyuk, General Director of Dneprometiz, commented: “This integration will benefit all parties involved. New opportunities will present to Dneprometiz as a result of the greater efficiencies and lower costs that this agreement will allow. Furthermore, we will, of course, be able to learn from and use the experience of our partners from Severstal Ukraine to our advantage.”

Igor Gutorov, General Director of Severstal Ukraine, commented: “This integration means that the money that we previously paid for renting premises will be kept within the Company, which will improve our operating efficiency. Furthermore, combining our rolled metal products, primarily supplied from Cherepovets Steel Mill, with the metal goods produced by our colleagues at Dneprometiz within a single facility will considerably improve the quality of our consumer service.”