Consumers opt for quality

Corr. – Mr. Vasilyev, would you tell us about the specialization of your enterprise?

V.V. – SevMash is a state-owned enterprise in Severodvinsk, specializing in machine and ship building. One of our key activities is producing military equipment for Russia’s Navy and for foreign customers; seagoing equipment for gas and oil recovery; and civil shipbuilding.

Corr. – For what kind of production do you use stainless steel?

V.V. – We use stainless steel for building tankers to transport chemicals. We consume various product assortments like rounds, squares, sheets and plates.

Corr. – One of the shipbuilding specifics is the strong requirement for materials that are intended to work in an aggressive environment. What particular stainless steel grades do you use?

V.V. – Mainly, we use corrosion-resistant steels: AISI 316L and Duplex (austenitic-ferritic grades). From time to time, we also use AISI 321 and AISI 304.

Corr. – Your requirements towards stainless steel are strong enough. Which suppliers do you prefer to work with? Do you buy mostly domestic or imported steel?

V.V. – We give preference to imported steel. However seldom but we do buy, in particular, flat-rolled stainless steel from local producers. As far as the production specifics concern, we have enough troubles with both foreign and local suppliers. The basic hitch with import supplies is in shipping time that not always suits us. On the other hand foreign steel is of excellent quality. Russian steel slightly wins in price and shipment terms however it yields to the imported steel in terms of quality. Exactly that is why, under other equal terms, we prefer to buy foreign steel from import traders.

Corr. – Who of stainless steel suppliers could you mark out?

V.V. – Among local traders – Agis-Stal and Russian Stainless Steel; among foreign producers – ThyssenKrupp AG, Outokumpu. Among the CIS producers – Dneprospetsstal and Zlatoust MZ.

Corr. – What would you like to wish to be improved in the work of suppliers in 2007?

V.V. – My main wish concerns supplying volumes. Our purchase may vary 10 kg to 100 tones per month. It would be great if suppliers could sell not only in large volumes but also in small lots. After all, it would look absurd to buy a whole carriage of stainless steel while requiring only 300 kg. Small batches are far from interest to producers and traders. But what is left for the consumer to do in this case? This problem in Russia needs to be solved somehow.

Corr. – Mr. Vasilyev, thank you very much for your interview. We are glad to invite you to the International Seminar ‘Price 2007 For Flat-rolled Stainless Steel’ that will take in Moscow on 25th January, 2007 where we will continue discussing this and many other issues.