Mechel Trading Company Opens New Warehouses
08/15/2007 - Mechel’s trading company opens five new warehouses, with plans for further expansions to its distribution network in the near future.
Mechel-Service OOO, the trading company of Mechel OAO, opened new warehouses in July. The company also plans to further expand its distribution network.
Mechel-Service opened its new units to meet high demand for construction rolled products. Four of the five new units opened in Moscow, Yekaterinburg, Sochi, St.-Petersburg, where they were established in addition to the centers that were already operating in these cities. The company also opened an initial unit in Voronezh.
The new, well-equipped facilities will be used for storage and transshipment of a broad range of metal products. They are well-situated in proximity to transportation routes and large customers and staffed with regular personnel.
In total, the new warehouses can handle approximately 15,000 to 20,000 tonnes of metal products every month. The new warehouse facilities will also help Mechel-Service to reduce its costs of freight transportation and expand into new markets.
With new sales units in place, Mechel-Service can expand sales of products from Mechel's metal and hardware subsidiaries and improve the trading company's profits from selling non-Mechel products. With a great deal of construction underway in Moscow and other regions, the company will be able to ensure stable operation of its new units.
In August and September Mechel-Service plans to open a number of remote warehouses and units in Cheboksary, Ryazan, Barnaul, Krasnoyarsk, Kemerovo, Tomsk, Irkutsk, Volgograd, Astrakhan, Orenburg and
Surgut.
“Today Mechel-Service is expanding due to a growth of sales volumes at existing units; an active expansion of sales geography; and the opening of new warehouses to increase sales. We also rely on the expansion of our services, including the creation of efficient logistic delivery patterns, the acquisition of our own truck fleet, the provision of metal working services and the production of structural shapes made to order to suit buyers' needs to further drive our growth. With a developed unit network and good inventory, Mechel-Service is well-positioned to meet the needs of end users for metal products without any intermediaries,” said Andrey Ponomaryov, Mechel-Service's CEO.
Mechel is one of the leading Russian mining and metals companies. Mechel units produce coal, iron ore, nickel, steel, rolled products, and hardware, which are marketed domestically and internationally.
Mechel-Service, which sells Mechel's metal products on the domestic market, is a metal trading company with a wide network of branches in major Russian regions. With its focus on servicing the end user, Mechel-Service offers a wide range of both Mechel's and other steelmakers' products to its customers. Mechel-Service has warehouse capacities in two dozen of Russia's most developed cities.
