OREANDA-NEWS. Metinvest Group and Module-Ukraine, LLC, a leading Ukrainian producer of coated steel, concluded a long-term agreement to develop the colour-coated rolled steel market.

As part of the agreement, Module-Ukraine will receive from Metinvest Group feedstock for galvanizing and colour coating, and Metinvest will exclusively supply colour-coated rolled steel through its distribution network in Ukraine and the world.

All colour-coated rolled steel products that are in high demand on the market will be available in the warehouses of Metinvest–SMC, the Group’s wholesale and retail sales channel in Ukraine. As part of the partnership, Metinvest-SMC put together a production plan for July of 1,000 tons and started placing orders for August.

Metinvest will –work with buyers of colour-coated products in Ukraine and abroad, taking advantage of the company’s international vertical integration and its international distribution network, specifically in terms of prompt deliveries, competitive pricing, trade financing options, and technical expertise.

In 2014, the Ukrainian market for 0.39-1.00 mm colour-coated rolled steel was about 280,000 tons, mostly consisting of Chinese products, which accounted for 50% of total imports. However, Chinese rolled steel is far inferior to local coils when it comes to corrosion resistance as it has a thinner galvanizing and colour coating layer.

Dmitry Lyppa, Metinvest-SMC's general director:

“Our goal is to supply our clients with high quality local colour-coated rolled steel, which they can buy on comfortable terms and conditions, i.e. with the shortest delivery times from the plant or metal centres of Metinvest-SMC. This will help our clients significantly reduce their commercial and currency risks. Jointly with Module-Ukraine, we will be able to achieve our long-term objectives to develop the colour-coated rolled steel market in Ukraine.”

Igor Titov, Module-Ukraine's general director:

“Cooperation with Metinvest will help us ensure regular supplies of feedstock to cover the needs of our galvanized and colour coated production plan, reduce costs and create a robust basis to further develop our enterprise.”