The share of Cherepovets Steel Rolling Plant in the rope market in 2002 was 23.5%. This is 5% higher than in 2001. In 2002, rope production at ChSPZ grew 6% as compared with 2001, reaching 34,328 tonnes.

The domestic market for this product is declining by 7% down to 146,000 tonnes in 2002. In spite of that CHSPZ was able to increase its share for a number of reasons. First, it was due to high quality service and sticking to contract terms. Second, it has to do with the quality of CHSPZ’ products. CHSPZ is the only Russian steel company which produces rope certified by Gostehnadzor. This certification allows to use it at hazardous and dangerous industrial facilities.

Quality and service improvements are underway and coordinated with the company’s key customers. Quality is also discussed at annual meetings of CHSPZ staff with representatives of coal and ore mining companies.

Proximity to the main supplier of raw materials - Severstal Steel Mill is also an important factor. This is why the shortage of raw materials in the second half of 2002 was not so severe, as compared with other wire products’ companies.

In 2003, CHSPZ plans to increase its share in the rope market up to 26%. CHSPZ will also continue nonprice competition, concentrating on the quality of service. A number of investment projects aim at increasing output and improving rope quality. They include the reconstruction of the rope-twinning machine of the basket type, which will increase the machine’s capacity 1.5 times. This machine’s output and the stock of orders it is to produce is 25% of the overall rope output of CHSPZ.

15 January 2003