Severstal Distribution saved its EBITDA

​In Q1 2016 Severstal Distribution group reached EBITDA of $8 mln despite of the price fall for steel products. In Q1 EBITDA is saved at the level of Q1 2015.

The revenue of Severstal Distribution group in Q1 2016 made up $132 mln, by 4% less than in Q1 2015. Low steel prices stayed until March 2016 but due to the growth of volumes of supplies by 18% the revenue fall was minimal.

A significant positive influence on the amount of revenue and EBITDA was made by the volume of products sale with high added value, including the offered to clients services, shipment and a number of accompanying services at cooperation with other companies. In May Severstal put into operation a new fully automated cold rolling mill at the plant in Cherepovets that will allow to increase the plant’s production capacity by 200 thousand tons a year, by almost 1/5.

These products will be meant primarily for car manufacturing industry, producers of household appliances and construction sector. The first shipment was made to the Gorkovsky car manicuring plant belonging to GAZ group. From the beginning of June Severstal Russia Steel has a new CEO – V. Germanov who previously headed the department of services.