Background:  During the first eight months of 2003, sales through on-line auctions totalled 60,000 tonnes.

As part of Severstal's business process optimisation project, the company has developed software that allows it to hold on-line metal auctions over the internet.  According to Dmitry Goroshkov, Severstal's sales director, 'the ability to hold on-line auctions through the company's website (www.severstal.ru) allows customers to learn about and take advantage of new operating methods.  In addition to giving a new service to our customers, we will increase sales volumes, expand our customer base and increase the transparency of our company.  Further we expect to save up to one million roubles per month in reduced administrative costs by using the internet.'

20 August 2003