Steel Industry Company

The Steel Industry Company (SEC) is one of the largest independent companies supplying rolled steel to the markets of Russia and the CIS countries. The company is engaged in the wholesale and retail trade of rolled metal, and also develops the production direction: it processes metal and produces various profiles.

The steel industry company has been operating in the Russian metal market since 1991. Today, SEC is a vertically integrated divisional network of enterprises that process and supply rolled metal to the markets of Russia and Kazakhstan. The management company is located in Yekaterinburg.

History

2022: Fine for cartel conspiracy

On July 27, 2022, the Federal Antimonopoly Service (FAS) of Russia announced the imposition of a fine of 1.77 billion rubles on the largest suppliers of rolled metal, which, according to the regulator, entered into an anti-competitive agreement in order to maintain prices at the auction. We are talking about the following companies:

JSC "Steel Industry Company"; LLC "Service Center for Rolled Metal"; Stroytekhtsentr Enterprise LLC; A Group LLC; Uralmetallstroy LLC; Procurement and Supply Management LLC; LLC "Metallotorgovaya company Kraso."

FAS fined the largest metal traders for cartel collusion

The largest fine will have to be paid by "A Group" - 1.01 billion rubles. The steel industry company (SEC) was fined 304.9 million rubles, the metal trading company Kraso - 179.98 million rubles.

In the second half of 2021, against the background of a sharp increase in prices for rolled metal, the FAS conducted inspections of metal traders in a number of regions of the Russian Federation. Subsequently, the FAS found out that they entered into an anti-competitive conspiracy and supported trading prices with a total initial price of 2.69 billion rubles.

The decision of the FAS Russia and the materials on the case were sent to law enforcement agencies to resolve the issue of initiating a criminal case on the grounds of a crime under Article 178 of the Criminal Code of the Russian Federation. For its commission, liability is provided in the form of imprisonment for up to seven years.

The general director and owner of "A Group" Aleksei Zaytsev, in a conversation with Businessman"," said that the company did not agree with the decision of the FAS and would challenge it in an arbitration court.

In addition to traders, the FAS conducted an investigation into the largest metallurgical companies - Severstal, NLMK and MMK. In February 2022, the FAS recognized these companies, which account for more than 70% of the hot-rolled flat steel market in Russia, guilty of the fact that since January 2021 they have established and maintained monopolistically high prices for their products.^[1]

Branches and representative offices

The company operates in almost all constituent entities of the federation, in 53 cities of Russia and abroad. Since 2001, the Steel Industry Company has been a member of the Russian Union of Suppliers of Metal Products (RSPM) and, according to Forbes magazine, is one of the 200 largest companies in Russia.

The branch network of the Steel Industry Company is represented in almost all constituent entities of the Federation, in 53 cities of Russia and abroad. The main and large branches of the Company are located in the cities: Yekaterinburg, Moscow, Chelyabinsk, Perm, Ufa, Tyumen, Syktyvkar, Omsk, Kurgan, Novosibirsk, Orenburg, Krasnoyarsk, Irkutsk, Yu-Sakhalinsk, Kirov, Kazan, N. Novgorod, Samara, Saratov, Volgograd, Krasnodar, Astana, S-Petersburg, Izhevsk, Surgut.

Activity

The Steel Industry Company accounts for 5% of the steel consumption market in Russia.

A total of 250,000 tons of metal products, more than 10,000 items and sizes are constantly located in the warehouses of the Steel Industry Company.

The company has 248,600 square meters. m. Warehouse space, of which 108,000 square meters. m. - covered warehouse complexes; 136 industrial real estate objects; 40 land plots.

A significant part of the warehouse and office premises is owned by the Company.

Products

The steel company offers a full range of rolled metal products, represented by almost all metallurgical plants in Russia and a number of countries abroad. About 250 thousand tons of rolled metal are always available in the Company's warehouses.

Opportunities of the Steel Industry Company:

• SPK has the ability to pick up prefabricated cars up to 30 items
• SEC has the opportunity to satisfy the client's request as much as possible
• The SEC has the possibility of planned deliveries on time and to the place specified by the customer.
• The SAP sales structure for assortment items is specific to the Universal Supplier.

Suppliers

The main suppliers of the Company are the largest metallurgical plants in Russia and the CIS countries, including MMK, NLMK Group, Arcelor Mittal, Evraz, Severstal, TMK Group, ChelPipe Group, OMK. Relative independence from suppliers allows the Company to optimize supply logistics and combine delivery of orders to different regions in pools to minimize costs.