Over the first 6 months of 2002 CHSPZ produced almost 237,800 tones of metal products, which totaled 2.362 million rubles. Overall, the output in 2002 was 95.3 % of the like period of last year, and in monetary terms - 98.7%.
   According to Vadim Shvetsov, first deputy general director of the Severstal-group, CHSPZ experienced difficulties in the markets as the steel industry was near stagnation. However, in this situation CHSPZ' top management was able to readjust its plans and activities, and began working at decreasing expenditures, stock and unfinished products. As a result, in the first six months of 2002 the stock of raw materials and unfinished products decreased by 55 million rubles.
   The difficult situation in the metal products markets was reflected in the drop in output of the Prommetiz association members by 12%. For example, Beloretsk Steel Mill's output dropped by 14%, Magnitogorsk Metal Products Plant' output decreased by 14.3 %. CHSPZ' output dropped by 4.7% as compared with the previous year, and the plant increased its share in the metal products market from 37.2% in 2001 to 39.3% in 2002. CHSPZ' profits in the first six months of 2002 dropped by 37.9%, while profits of other Prommetiz association members decreased sixfold.
   In this situation the pant intends to continue with its service-oriented strategy. It plans to create trade representative offices in main regions and increase the network of authorized dealers from 8 to 25-30 companies.
   Additionally, the plant intends to increase sales of products such as wire with zinc coating to the European market and will begin shipment of calibrated steel of a high class of accuracy. In the first six months of 2002 CHSPZ exported 54,000 tones of products to the total amount of 530 million rubles, which is an 8% increase over the previous year, and a 17% increase in monetary terms.
   Sergey Sokolov, the general director of CHSPZ, mentioned the following strategic projects that took place in the first six months of 2002 - implementation of the new employee remuneration and motivation system, establishing crediting policy and credit control for sales in the domestic market, developing new accounting system and expense allocation in main shops, and launching experimental sales module of BAAN integrated system. Besides that, over the same time period CHSPZ began incorporating statistical methods of managing production and started changing company's corporate culture.