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Severstal will provide 100% of rolled metal need for Tikhvin Freight Car Building Plant

14.03.2014

Severstal, one of the world’s leading vertically integrated steel and mining companies, and Tikhvin Freight Car Building Plant (managed by United Wagon Company) have signed an annual agreement under which the Cherepovets Steel Mill (a subsidiary of the Severstal division) will provide 100 % of sheet and coil metal need for TVSZ. An average 5 thousand tons of rolled metal will be supplied every month. 
In total more than 38 thousand tons of rolled metal was supplied to the enterprise for the year, that is in 2 times more comparing with 2012.

Cherepovets Steel Mill is providing Tikhvin Freight Car Building Plant with sheet and coil metal utilized to produce body elements for different car models including gondolas, hopper-cars and platforms. At the present time representatives of technological services of both enterprises are working intensively on possible utilization of modern high-strength steel grades for innovative car types, which have already obtained government support.

Also the companies are carrying out a joint cross-functional project on establishment of stable system for rolled metal supply that resulted in improvement of supplied product quality and reduction of turnover time of rolling stock delivered rolled metal to the consumer.

“The joint project realization allows extending our collaboration, i.e. to find jointly reserves to improve system of rolled metal delivery to the enterprise and develop new product types”, commented Dmitry Goroshkov, Marketing and Sales Director at the Cherepovets Steel Mill. 

Roman Lobanov, Supply Chain Director at United Wagon Company (managing company of TVSZ) said: “Tikhvin Freight Car Building Plant is interested in cooperation with reliable suppliers, who provide quality materials on required terms. Severstal is our long-term partner. We believe that within our collaboration we can achieve even more significant results. We see cross-functional project as an important and prospective partnership direction, due to which the delivery time will be not only simplified and speed up, but we will also have additional opportunities for cost optimization”.

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