Severstal’s Cherepovets takes over Oryol
Part of
Russia's
Severstal Group, Cherepovets
wire mill has taken over Oryol
wire mill (Ospaz) in central
Russia.
The officials from Cherepovets state that, improving Oryol's performance and commercial strategy and increasing exports are targeted. However, due to the possibility of purchasing more stakes in Oryol, the officials also add that, they are not willing to reveal the size of its stake in Oryol.
Oryol has reported a 33% increase of steel products in H1 of 2003, compared with the same period last year. The output of H1, which is 98'700 tons is expected to increase to 251'000 tons by the end of 2003. Moreover, the sales revenue of the company is recorded as Rb 1.4 billion (Rouble=Russian currency) ($45 million) which correspond to an increase of eight times, compared with the same period last year and after-tax profit is Rb13 million ($426.000). 17% of the current products of the mill are exported to 28 countries.
Current developments conducted in the plant are; introduction of new products and a new customs terminal for exports.