Russian steelmaker Severstal has acquired the production and warehouse complex of Dmitrovsky Metal Center (DMC) in Moscow Region, strengthening its pipe business and expanding distribution and processing services for small and medium-sized customers.
DMC is one of the largest production and warehouse complexes in Moscow Region and a leading regional metal service center. The company produces welded construction pipes, including round, square and galvanized pipes in small and medium diameters, and processes flat steel products. Its production and warehouse facilities cover around 50,000 sq m and employ more than 1,300 people.
The acquisition is expected to increase sales volumes of Severstal Set by around 700,000 tons per year and strengthen the company’s distribution business in the Central and Northwestern Federal Districts, Severstal said.
Severstal CEO Alexander Shevelev said the acquisition supports the company’s strategy of increasing sales of higher-value-added products and expanding its presence among end users. He added that the integration would provide an additional platform for growth as steel demand recovers.
Severstal is one of Russia’s largest integrated steel producers, with annual crude steel production capacity of approximately 11.8 mln tons. Its flagship Cherepovets Iron and Steel Works is one of the country’s largest flat steel producers.