Mechel, one of the leading Russian mining and steel groups, has announced the 2009 development results of its sales and service network Mechel Service.
Accordingly, in line with the company's strategy to develop its own production and warehousing facilities, in May 2009 Mechel Service launched its production of welded mesh in the Moscow region, reached its capacity of 700 mt per month in the autumn. The supplies are made to the Moscow region and to the south of Russia, and are expected to extend to the northwestern region. In addition, Mechel Service's product portfolio now also includes B500C cold-deformed reinforcement and pipe rolled products.
In addition to the in-house production, in 2009 Mechel Service established its own cargo fleet, which allowed it to significantly optimize timelines in steel product supplies for customers in the central region of Russia. In 2010 a fleet expansion is planned for operations in Moscow, Krasnodar, Yekaterinburg, Saint-Petersburg, and Novosibirsk.
In 2009, the company expanded its regional network by opening new branches in Penza, Lipetsk, Guryevsk and Engels. Currently, over 50 units of Mechel Service are successfully operating in Russia, and most of them are equipped with working machines for reinforcement cutting and straitening and rope unwinding. In 2010, the company plans to increase its volumes of steel product processing also due to its purchases of new equipment.
"Thanks to the quality development and expansion of the branch network in the regions of Mechel Service's operation in 2009 we managed to secure sales volumes at the pre-crisis level and even to enlarge our market share in certain directions. Stable marketing allowed us to maintain a high capacity utilization level at Mechel's enterprises and to respond to market needs promptly," Mechel senior vice president Vladimir Polin commented.