On October 13, 2014, AS Severstallat (a member of Severstal Russian Steel Distribution Network) launched new equipment that will be used to manufacture high-quality products for EU markets in Riga.
Among the guests of the launch press conference were Chief Executive of Severstal Russian Steel Sergei Toropov, Extraordinary and Plenipotentiary Ambassador of Russia to Latvia Aleksandr Veshnyakov, Latvian Minister of Economics Vjačeslavs Dombrovskis, Head of Employers' Confederation of Latvia (a social partner of Latvian government) Līga Menģelsone, Vice President of Latvian Chamber of Commerce and Industry and other officials.
The company will use the new equipment to manufacture steel plates from rolled steel up to 12 mm thick that will enable it to serve a new market segment. High-quality steel plates manufactured using the new equipment will mostly be used by machinery manufacturers in Northern, Central and Eastern Europe.
“We see a potential for development of Severstallat, with its highly skilled team offering a wide range of products and services to our customers,” said Chief Executive of Severstal Russian Steel Sergey Toropov. “Prime location helps Severstallat to organize efficient supply of Russian Steel products to European consumers. We will keep growing our European sales through our Latvian subsidiary.”
Severstallat manufactured 1,000,000th tonne of its products this year. Production volume has been growing consistently over the last few years as the company responds to customer needs by adding new products to its lineup.
Approximately €40 million were invested in Severstallat in Latvia since its foundation. The new equipment required the investment of approximately €2.8 million.
The investment project focused on development of AS Severstallat operations in Latvia was announced in May 2013. Italian Novastilmec S.p.A. manufactured custom-made equipment for AS Severstallat.
The investment project of AS Severstallat brings several benefits to Latvian economy, such as increased exports of high-value-added products manufactured in Latvia and the growth of a Latvian company paying more than €6.5 million in taxes every year. This investment project resulted in approximately 30 new jobs created in AS Severstallat.