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22 April 2019

A new record of SSC Severstal Distribution in Riga: 65 k tons of steel products per one quarter

During the first quarter 2019 the Service steel centre Severstal Distribution in Riga set several records: for the first time ever this subdivision produced 65 k tons of the finished products during one quarter of a year and workers of the lines producing hot rolled steel sheets 12mm thick and commercial skelp renewed their previous records within one month.

SSC Severstal Distribution Riga is specialized in processing of the flat rolled steel products producing skelp and sheets out of steel requiring delicate handling and hot rolled steel sheets as well as welded pipes for the markets of North and East Europe. The peculiarities of SSC Riga product portfolio is the tailor-made production of skelp and pipes to meet individual requirements of the customers for dimensions, packing and marking combined with production of the standard size steel sheets for more than half of the orders which refer to commercial product mix. Such peculiarities are taken into account during production planning: on the one hand, SSC can make products adapted for requirements of certain customers and on the other hand its performance is improved by standardization. During the first quarter 2019 the total production output of commercial products in SSC Riga made 65 k tons which is 2.5% more than the previous record which was achieved during the second quarter 2018. Such a record was encouraged also by the “tuning” of production planning focused on commercial product mix.

Artemii Timoshenko, director for logistics and production of Severstal Distribution group mentions that “for those customers who purchase hot rolled steel sheets from us, increase in commercial products stock reduced the waiting time of the order performance due to availability of the whole range of dimensions in stock. This is crucial for the European market where 24-72h supply is in demand. In our turn we increased production capacity by reducing the operation downtime of equipment during its re-setting for manufacturing of a different product size. One more positive outcome is increase in warehouse storage volume: as a rule we do not store our products intended for different customers or sheets different in size in the same pile, while «non-individual» packages of standard size sheets can be stored in one high pile to enable placing of larger volume of products at the same area. As a result in March we produced 13 400 tons of hot rolled steel sheets for the first time during one month – standardization helped us to neglect the existing limitations of the warehouse volume and production speed. Such solutions are unacceptable for the tailor-made products but they let us satisfy the growing demand for the standardized products. During the several previous years SSC Riga annually increased the total production of finished products by 5%. We plan to keep the same growth rate and to this end we work hard to optimize the pattern of warehouse storage searching for the ways to improve production capacity of our equipment.”