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Ilyich Iron and Steel Works

Metinvest expands its distribution network in Russian Federation

8 August 2011 // Press-service Metinvest

Metinvest Eurasia, the wholesale and retail sales channel of Metinvest Group in Russian Federation, has expanded its distribution network by opening metal center and sales office in Saratov, one of the largest industrial cities in Volga Federal District.

Presently, Metinvest Eurasia’s distribution network in Russia includes 24 warehouses in Central, Southern, Northern Caucasus, Northwestern and, from now in Volga Federal Districts. Integration of MMKI products i has expanded the range of flat rolled product to be sold (heavy plates as well as hot-rolled, cold-rolled, galvanized coils and plates) in Russia and offered new sales development opportunities. The share of plates in Metinvest Eurasia’s sales structure grew from 27% in the first half of 2010 up to 45% in the first half of 2011.

Product mix at Saratov warehouse includes rebars, wire rod, beams, channels, angles, heavy plates, hot-rolled sheets, cold-rolled sheets, galvanized plates and coils produced by Azovstal (Mariupol), Yenakievo Steel Works, MMKI as well as other steel mills in Ukraine and CIS countries. During first three months the level of warehouse inventories will be maintained at 3-4 Kt with subsequent increase up to 6-7 Kt. The products in stock will be sold to consumers in Saratov and Penza regions.

"Metinvest’s strategy in Russia is a maximum proximity to end user. Opening warehouse and sales office in Saratov is an important step towards our goal. We will keep on exploring possibilities of developing our distribution network in Russia both, at the expense of strengthening our positions in existing regions and opening warehouses and sales offices in new regions", noted Roman Rybalov, CEO of LLC Metinvest Eurasia.

Editorial notice:

Metinvest Eurasia, LLC is the wholesale and retail sales channel of the Steel and Rolled Products Division of Metinvest Group in Russian Federation. The Company sells goods manufactured by Azovstal I&SW, Yenakiieve Steel and other enterprises on Russian market through the network of branches located in Central, Southern, Northern Caucasus, North-Western and Volga Federal Districts of Russian Federation.

Sales Service of Metinvest is represented by following Companies: Metinvest International SA — export of steel products outside Ukraine and to CIS, Metinvest SMC – sales of steel products through service metal centers in Ukraine and South-East Europe, Metinvest Eurasia - export of steel product to Russia, Metinvest Ukraine – sales of commercial steel product in Ukraine and export to CIS countries in batches from 65 tons and more.

METINVEST GROUP is an international vertically integrated steel and mining group of companies, operating assets in each link of the production chain from iron ore and coal mining and coke production, through to semi-finished and finished steel production, pipe rolling and coil production and production of other value-added products. The Group comprises mining and steel production facilities located in Ukraine, Europe and the USA and has a sales network covering all key global markets. Metinvest Group is structured into three operating divisions: Coke and Coal Division, Iron ore Division, Steel and Rolled Products Division and has a strategic vision to become the leading vertically integrated steel producer in Europe, delivering sustainable growth and profitability resilient to business cycles and providing investors with returns at above the industry benchmarks.
The major shareholders of the Company METINVEST B.V (a holding company of Metinvest Group) are SCM Group (71.25% ownership) and Smart-Holding (23.75% ownership) partnering in Company’s management.

METINVEST HOLDING LLC is the managing company of Metinvest Group.