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25 June 2008
Orelcord is prepared for new relationships
Orelcord, the subsidiary of Severstal-metiz that manufactures tyre cord, has developed and intends to implement a new relationship model with its customers, which is based on partnership, openness and team work on joint objectives. 60 million dollars will be invested in development of this.
We actively cooperate with the tyre producers to improve quality and service. We are not aiming to expand our sales volume at any cost. It is much more important to understand the customer expectations and offer a product fulfilling the requirements of the tyre industry”, - emphasised Alexey Erenichev, the CEO of Orecord.
The overall investment program of Orelcord is targeted at the main objective - to improve service and provide the maximum efficiency of customers’ business. As part of this program, 24 million dollars will be invested in improvements in technology and increasing capacity of brass plated wire up to 20 thousand tons per year. 21 million dollars will be invested in development of new types of products: bronze plated bead wire, steel cord for all radial tyres, super and ultra tensile steel cord. 15 million dollars will be used to increase capacity of steel cord for passenger tyres.
This investment will allow the company to double its revenue to 80 million dollars over the period 2012-2014, increase margin by up to 12 % and increase the share of the Russian and the CIS markets to 25 %. Orelcord will maintain its share in the steel cord for truck tyres and essentially increase the deliveries into the passenger tyres segment. In addition the company plans to enter the European market and it is expected that by 2017 Orelcord will become a large player in the European market.
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Orelcord is a subsidiary of the Group of companies Severstal-metiz and produces steel tyre cord. It was founded on the 1st of July, 2005 in Orel (until December, 2007 it was known as TA Rus – the joint venture of companies Severstal-metiz and ArcelorMittal, and before that until the 9th of February, 2006 – TA Cord).
The company is a leading producer of steel tyre cord and bead wire in Russia and the CIS. The customers of Orelcord operate tyre manufacturing plants in Russia and the Ukraine.
In 2007 the production volume of Orelcord was 24.6 thousand tons.
In 2006 the Company achieved the certification of quality management system ISO 9001. In 2008 it acknowledged the certification.
Alexey Erenichev is the CEO of Orelcord.
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