Motovilikha — Civil Engineering LLC (part of PJSC Molovilikha Plants, managed by RT-Capital of Rostec State Coproration) has after a 5-year standstill resumed export deliveries of metallurgical products, used in the production of agricultural and household appliances, to Germany.
The company has signed four contracts with leading metal companies (distributors of products, including metalworking services) for the supply of metallurgical forging products from five grades of steel, including alloy steel. Under the terms of the contract, the company will ship over 700 tons of steel by the end of the year.
"Rostec State Corporation is currently carrying out a comprehensive anti-crisis program with the Motovilikha Plants group of companies. These measures are aimed at improving production efficiency, development of new types of products, providing the civil and military production sectors with additional orders, restructuring of the production site, as well as possible cooperation with other Russian industrial enterprises. The program has enabled the civilian production division of Motovilikha to actively expand the geography of export deliveries of metallurgical products to non-CIS countries. Today, exports to Europe account for about 20% of the total share of sales abroad. This is already at least twice as high as last year's figure. The new contracts will help the company to make production more profitable and, depending on demand, expand the range of high-tech steel grades in the overall portfolio of products supplied to Europe," said Kirill Fedorov, General Director of RT-Capital.
The supplied steel grades are mainly used for manufacturing machine parts, tractors and various household appliances. In Germany, steel billets undergo mechanical processing and are then delivered to end users, which are some of the largest machine-building plants in the country.
Steel produced by Motovilikha has successfully passed the tests for compliance with the quality requirements for chemical composition and specifications, including potential range of applications and Euronorm requirements.
"One of the priority tasks of Motovilikha – Civil Engineering LLC is to boost export revenue to 1 billion rubles by the end of the year by expanding the range of supplies both to the CIS countries such as Turkmenistan, Uzbekistan, Belarus, Kazakhstan, as well as other countries like Germany, Finland and Bulgaria. We focus on the supply of both oil industry equipment such as sucker rods and drill pipes, and also develop the supply of various types of metallurgical products. New export contracts will allow us to significantly fill our production capacity with orders and increase revenue by at least 10%," said the head of Motovilikha—Civil Engineering Sergey Dyadkin.
