An important step was taken by Severstal as part of its strategy to expand its influence in the Russian market. The major steel producer announced the acquisition of the distribution business from A Group Corporation, which was owned by the structures of Alexey Zaitsev, a well-known founder and CEO of the company.
A Group stands out from other metal service corporations in Russia with its impressive performance and wide branch network covering regions from Minsk to Yuzhno-Sakhalinsk. In 2023, it sold more than 1.2 million tonnes of steel products, mainly in the construction industry, and has a rich product line of more than 5,000 products.
According to Severstal CEO Alexander Shevelev, this acquisition is in line with the company's strategy and will strengthen its leadership in the Russian market. It is planned to increase the distribution division's sales volume to 3 million tonnes in 2024, which will make Severstal one of the three largest players in this area. This step will also provide the company with a federal distribution network with extensive warehousing capacity across the country.
Special attention is given to preserving A Group's third-party purchases, which will allow Severstal to increase sales volumes, maximise their efficiency and flexibility, and provide customers with prompt access to a variety of products and services. In accordance with the FAS order, all concluded contracts for the supply of steel products will be fulfilled, while maintaining the structure of A Group's product range and geography.
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