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  mass-media about company
25 April 2008
Severstal-Metiz continues shift to high-end wire
Russian wire and wire products maker Severstal-Metiz says that 2008 will see a continuation of the company’s course towards higher value-added products, which last year led to an increase in its profitability. The company has plants in Russia, Ukraine and the UK.
In 2007, Severstal-Metiz lifted its revenue to $1 bn from $839 m in 2006. Earnings before interest and taxes almost doubled to $87.3 m. According to CEO Olga Naumova, this performance is the result of a decrease of low margin products sold in the CIS and European markets and "the increase of the share of high value-added products within the product portfolio."
As the emphasis is on product improvement, tonnages delivered dropped somewhat from 1.1 m tonnes in 2006 to 1.06 m t in 2007. "We are mostly focusing on more downstream, more customised applications," Naumova commented to Steel Business Briefing. In high carbon, for example, this is ropes and special ropes for mining applications, she added.
In 2008, deliveries within Russia are expected to reach between 680,000 t and 690,000 t, slightly above the 2007 level. In Ukraine, a slight drop in the sales volume to around 70,000 t is expected due to the reduction of low margin products.
According to Severstal-Metiz, the Russian and Ukrainian markets are forecast to grow by around 5-6 % this year. In these markets, it expects competition to get fiercer, and sees higher requirements for quality.
In other CIS countries, the сompany’s sales volume is expected to reach 43,000 t. In the European market, it forecasts sales of 270,000 t of mostly high-end material, including 90,000 t for the UK.
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