TPT January 2021

How is Severstal’s offer differentiated from peers in the EU market? There are three main factors that set us apart from other companies. The first is our cost efficiency. We are the most cost-efficient Russian steel supplier to international companies. This is largely helped by our position as a vertically integrated company, which means we have control over the whole of our production chain, from raw materials to finished pipe products, in addition to the strategic location of our operations – our main large-diameter LSAW production facility is based right beside the port facilities in St Petersburg, Russia, enabling us to export to Europe conveniently and efficiently. The second factor is our product offerings; we offer product packages, meaning we offer our clients in the energy sector not only large diameter LSAW pipes, but also the steel products they might need for their projects – such as fittings, ball-valves and other flat and long steel products. The third differentiating factor is our ability to provide customised solutions, product innovations and advanced engineering throughout the value chain; from steel to finished products. We can modify our product specifications to fit our customers’ needs and we can do this right from the start of the manufacturing process. This enables us to provide our customers with the best fit solutions for their projects. Severstal has its own R&D department that can develops unique, tailor-made products and value-added engineering solutions based on specific client requirements. In 2019-2020, the company sold approximately 150 thousand tonnes of highly innovative products to customers in the energy industry. What kind of products are you hoping to sell to the EU market – will they include high-tech products or tailored customer solutions? We have a broad product offering, from a range of dimensions and materials and grades for LSAW pipe, to many different products for LNG transportation and use such as storage tanks, production facilities and ships,

and also equipment for factories, including a particularly significant item – coil-wound heat exchangers, which we produce at our joint venture with Linde in St Petersburg. We are open to selling all these products on the European market. In terms of high-tech solutions, our R&D department also develops tailor-made products and engineering solutions. The R&D department integrates Industry 4.0 tools into its work, such as computer modelling (the ability to test product properties using a mathematical model) and prototyping (product sampling), among others. What kind of demand is Severstal seeing from energy majors in the EU market in terms of their supply chain? Energy majors are generally seeking products of the highest quality, which comply fully to the technical specifications of their projects and are delivered in a timely manner, adhering to all contractual conditions, which is something Severstal excels at. We also understand that major oil and gas companies are increasingly concerned about their environmental impact, and we are also working with solutions for this. For example – we are aware that methane leakage from pipes carrying natural gas is a major contributor to

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TUBE PRODUCTS INTERNATIONAL January 2021

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