The contracts on supply of steel rolled products from Cherepovets in 2004 are signed with ???, ?MK, Chelyabinsk pipe rolling Plant and with Volgorechensk pipe rolling Plant. The volumes of supply in the 1-st quarter of the year of 2004 remained at the level of the previous period - around 95 thou.t. per month.

The pipe rolling plants represent the strategic market for Severstal. Cooperation with these customers is conducted in a mode of continuous and detailed study of the client's changing requirements. In particular, the latest Coordination councils showed the necessity to develop and introduce into the production at Severstal new corrosion-resistant and cold resistant steel grades.

The requirements to the pipe steel grades become more and more rigorous due to narrowing the petroleum companies specifications for the steel products.

Within the framework of improvement of services at the beginning of 2004, the issues of logistics will be considered as well. In particular, the development of the alternative transportation schemes (not through railway) for delivery of the steel rolled products from Cherepovets to the pipe rolling plants.

15 January 2004