Unisteel aims to expand customer base
Ukraine-based hot-dip galvanised coil producer Unisteel is intending to gain supplier status for Ukrainian carmakers LuAZ and ZAZ, a Unisteel representative reveals to Steel Business Briefing.
Some 90-95% of HDG that Unisteel trades domestically is used for manufacturing window profiles, profiled sheeting and air duct systems. The plant is not yet selling any tonnages to the automotive sector, but is keen to receive some share of the orders which currently go principally to foreign HDG suppliers.
Unisteel currently has spare capacity. Ukraine consumed 71,000 tonnes of HDG in January-March 2011 with Unisteel holding roughly 10% of this market and utilising just under a third of its full capacity, SBB is told.
To win the favour of Ukrainian HDG buyers, Unisteel is zealously competing with US Steel Kosice and ArcelorMittal Galati, Slovakia- and Romania-based galv makers it considers its main rivals where quality is concerned. On the other hand Unisteel, along with other small-scale coated coil makers, is overshadowed by Ukraine’s Ilyich Iron & Steel Works.
Whilst the chief advantage of the Slovakian and Romanian plants over Unisteel is their long standing in the Ukrainian market, Ilyich is said to be competing rather by attractive pricing.
Unlilke Ilyich which self-sufficient for coil stock, Unisteel feeds its operations with outsourced, more expensive, although superior in quality, cold rolled coil from Russian steel mills – predominantly Novolipetsk Steel – and cannot always afford being as competitive as Ilyich pricewise, SBB understands.
SteelBB
31.05.2011