Thursday, October 17, 2013

Ukrainian opportunities.

Steel-Solutions B.V.

With a large amount of steel companies situated in Ukraine, there is enough activity and movement of steel to give this a serious try…

And serious we are. The first research has already been done. Ukraine is rich in steel plants and factories, both steel producing as well as steel processing. What strikes the most is that a lot of the companies are located in and around bigger cities in Ukraine. This is no strange phenomenon. There are no inland terminals, solely sea terminals. Transportation thus goes via road or railways. There is no need to situate near waterways if it does not provide you with an additional mode of transportation. So a logic place to establish your company is a place where the infrastructure already has to be good; in and around bigger cities.

Donetsk (displayed in blue on the map), a city with over 1 million inhabitants, and the area surrounding the city are home to 12 large steel companies.

3.       Makiyivka Metallurgical Plant
8.       Khartsyzsk Pipe Plant
9.       Energomashspetsstal

Dnipropetrovsk (displayed in purple on the map), a city with over 1,1 million inhabitants, and its surrounding area are home to the following companies:

1.         ArcelorMittal Kryvyi Rih
2.         Nikopol Ferroalloys Plant
4.         Dnipropetrovsk Pipe Plant
5.         Dniprovskyi Pipe Works

The Zaporizhzhya region (displayed in orange on the map), home to over 0.8 million people, is also the home of the following 6 companies.
3.       Zaporizhzhya Iron Works
The last metal company rich region is the Lugansk (displayed in yellow on the map) with over 0.5 million inhabitants. 3 companies choose this region as their place of settlement.

3.       Rubezhansk Pipe Works

What is very interesting about all these companies, is that it is a rich combination of steel producers and steel processors. But the organisation of the correct transportation, customs formalities and shipments via harbours remains a big challenge. A challenge that Steel Solutions is willing to accept; the perfect base for an international cooperation. If these things form a challenge for your company, why not give them to another company which already has experience in this department, and solve the difficulties for you? There are endless possibilities when it comes to logistics. Especially since there are multiple seaports in Ukraine and a wide network of railways tracks. 6 seaports (displayed in red on the map) all have short sea and long distance possibilities and over 21.500 km of railway track provide a lot of options for transport of steel products. Steel-Solutions already has experience with supplies and deliveries from Eastern Europe using the train. This can be the experience that these regions need.  

 

As you have been able to read in our previous blogpost, Ukrainian culture and habits in daily life as well as in business life differs from the Dutch culture. But that does not mean that Steel-Solutions will be put off by this. In order to create a new cooperation, you have to be willing to put in time and effort. A country that is so rich in steel and already so active in exporting steel is interesting for a company as Steel-Solutions. Consultation and agreements will have to be held in order to provide the Ukrainian companies with the information and security they need. It will take time and effort but something interesting could come out of the successful Factfinding Mission Logistics Ukraine.

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