ThyssenKrupp Services AG, the services subsidiary of Germany's largest steel producer ThyssenKrupp Steel, has announced that it is investing around €18 million to build two new facilities in Russia, including warehouses, logistics and processing centers, to be used by ThyssenKrupp Materials.
In order to expand its sales and warehousing organization, ThyssenKrupp Materials in Russia has bought five hectares of land in St. Petersburg and 2.5 hectares in Nizhny Novgorod. It is expected to open the new Nizhny Novgorod facility in September 2008 and the St. Petersburg facility in May 2009.
Commenting on the investment, Mr. Joachim Limberg, vice chairman of the Executive Board of ThyssenKrupp Services, said,"The Eastern European economy is performing very well, and Russia in particular is becoming increasingly attractive for our business. In the future we intend to establish high quality materials more strongly in Eastern Europe and further reduce the share of commodities. We will also continue to improve the quality of our products and services and expand our customer portfolio."
With its sales level of around €120 million, ThyssenKrupp Materials, the Moscow-based materials services company founded in 2004, supplies rolled steel, tubes, and stainless steels.