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OAO Severstal to Integrate Ukrainian Facilities

11/04/2010 - Severstal initiates a program to integrate the operations of OAO Severstal Ukraine and OAO Dnepometiz in order to serve the Ukrainian market from a single, combined production site.

Severstal has initiated a program to integrate the operations of OAO Severstal Ukraine and OAO Dnepometiz, its two enterprises serving the Ukrainian market. The goal is to improve the efficiencies of their businesses by combining their operations at a single production site.
 
Once the integration is complete, Severstal Ukraine, a sales enterprise that is part of Severstal Russian Steel, will operate from the Dneprometiz site, which is part of the Severstal Metiz Group. The new site will provide Severstal Ukraine with approximately 5000 square meters of total storage space, including a 2000-square-meter indoor storage area and a 3000-square-meter outdoor storage area. Severstal Ukraine will also benefit from the Dneprometiz site’s comprehensive range of transportation and logistical services, including shipment, stock placement and storage.
 
“This integration will benefit all parties involved,” commented Oleg Kovtonyuk, General Director of ОАО Dneprometiz. “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 ОАО Severstal Ukraine, added: “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 OAO Dneprometiz within a single facility will considerably improve the quality of our consumer service.”