The Moscow Metal Week

It was impossible to say if the 26th annual forum of metallurgists would actually happen this year till the very last moment. The forum took place in the hard circumstances of a second pandemic wave: the exhibition place itself was an issue, because VDNH Pavilion No.75 had been reorganized as a stand-by hospital, and the exhibition had to take place somewhere else. Furthermore, lots of public health requirements had to be fulfilled.

Despite the tensions, the most important event for metallurgy was a success. About 300 companies from Russia participated in the forum, along with the other companies from more than 15 foreign countries. The business program included all the key sectors of metallurgy with 2,500 of specialists working on them.

As was noted on the opening ceremony, we were all in process of getting used to online mode. But nothing can substitute a real-life communication: meetings, discussions of the pressing issues. The participants made themselves busy with agreeing on the delivery conditions for the foreseeable future, debating on the long-term cooperation and discussing other issues concerning production, science and cooperation.

Among the other domestic enterprises, one could also see the products of Metallurgical Plant Electrostal.

Half a year ago, there was no way to say if the pandemic situation would allow to hold the traditional autumn meeting with our partners: the world was rapidly rearranging itself towards the remote working, the conferences and round tables either turned into online meetings or got cancelled. As soon as mass event limitations were removed, Metallurgical Plant Electrostal issued invitations to all partners throughout Russia. Just under 50 companies agreed; both our partners and we had a lot to discuss – experience gained on survival in crisis, plans for the future, price policy, etc.

The pandemic taught us to value personal, real-life communication, so our round table meeting had a very special spirit.

In response to the government program for increasing the number of military aircrafts, many enterprises have undergone the modernization and reconstruction processes. Large investments were made to gain the auxiliary productive capacity that now, when the program has come to an end, become redundant. Effective use of these auxiliary resources is a pressing issue for many enterprises, including Metallurgical Plant Electrostal. So on the meeting it was emphasized that our plant is especially interested in long-term contracts with clear payment system.

It was also pointed out that Metallurgical Plant Electrostal would like to examine quotations pertain to the new promising areas: Ti-based alloys and powder metallurgy.

At the beginning of September, the recreational camp at Lukovoe Lake once again turned into a constructive dialogue ground for Electrostal management and our loyal partners. Within the scope of the traditional Round Table meeting the parties shared their opinions on price policy, improvements in output product quality and cooperation with the key consumers of complex alloyed steel and alloys.

This meeting has brought together representatives of 50 enterprises, including the manufactures who are well-known within and outside Russia: representatives of Engine & Aircraft industry, Rocket Engineering and Hydropower industry, as well as Research and Development Centers.

September 5 and 6 was marked by the 21th traditional round table meeting with buyers of heat resistant steels and alloys – namely our key customers.

In his welcoming speech our General Director E.V.Shilnikov emphasized that this tradition – meeting with each other, exchanging ideas, sharing the good news and discussing the faults – was in existence for more then twenty years already. And that was a good thing – good and important. Evgeniy Vladimirovich stated that the plant was operating steadily now, and a program of powder metallurgy development was started, so everyone was welcome to join it.

V.M.Chuiko, the President of ASSAD, greeted the guests on behalf of the International Association of Aero-Engine Manufacturers. Victor Michailovich also made a specific mention of importance of such meetings with your buyers. Here, at the round table, it is easy to ask questions and get clear answers. Here any discussion is meaningful.

‘Metallurgical Plant Electrostal joined ASSAD four years ago, and we are satisfied with our team work so far. I also like that here, on the meetings like this, we are discussing the issues of engine-building,’ said V.M.Chuiko. ‘Electrostal supplies us the critical parts for our engines: if one of these parts breaks down during the flight, the consequences might be very grave. But Electrostal’s production system is designed to produce the products of highest quality.

J.N.Koshelev, the Quality Director, informed the guests about the most relevant issues of products quality.

A.N.Korolev, the Production Superintendent, gave a summary of the current status of production facilities.

Deputy General Director – namely Director of Economics and Finance A.E.Romanov – told the guests about the recent developments at the raw material market. He pointed out that it was hard to keep the prices for metal products in check because of the rise in prices for electric power and because of currency fluctuation. But in case of long-period contracts the plant has the opportunity to hold the prices fixed. Electrostal also has a hedging limit in two banks. Anyway, as A.E.Romanov assured our partners, all prices would be discussed and considered individually, based on the specific stock of orders.

The issues of purchasing materials through tendering process were on the table, as these procedures are obligatory for many of our customers. Unfortunately, it often happens that the supplier wins the contract because he offers the best price, though he doesn’t guarantee the proper quality. But the plant produces heat resistant alloyed and stainless steel for aircraft, space, automotive, nuclear industry and so on – the most valuable products on the metal market.

The participants asked V.M.Chuiko, the President of ASSAD, for help with preparing the petition to Russian government about the raw materials: our plants want to apply for a chance to buy the raw materials, that belong to exchange commodities, at the inside price, and also to cancel the obligatory tendering for raw materials that are needed for critical types of products.

The customers also came up with the issue of contract creation – in their view, it takes too long to create a supply agreement. ‘Now we are working on integrating an automatic order processing system,’ told them Director of Sales M.S.Chebotarev. ‘I hope that for the next round table meeting we’ll prepare a detailed report about it and maybe even have it working in a test mode.

All meeting participants spoke favorably about Electrostal production quality and expressed confidence in effective cooperation in the future.

Our guests appreciate the round table meetings for the opportunity to touchbase with the professionals in private session, where they could discuss the most pressing and urgent problems of mutual cooperation. They have highest regard for frank and customer-friendly policy of Metallurgical Plant Electrostal.

Metallurgical Plant “Electrostal”, JSC has successfully passed the procedure of voluntary certification in the “Register of Bona Fide Suppliers” system.

As the result of certification process the plant obtained set of documents:

• Bona Fide Supplier certificate with an annex. The certificate of conformity states that Metallurgical Plant “Electrostal”, JSC is an effective contractor who satisfies the government and local government contracts, as well as commercial agreements; it supplies goods and performs services of required quality within the time period stated in the contract. The plant is highly-reputable and has a substantiated right to participate in the acquisition system (Defense Procurement and Acquisition)
• An extract from the Register of Bona Fide Suppliers. The plant was listed in the Register of Bona Fide Suppliers, a voluntary certification system, at June 5, 2018 on the portal http://ruscentr.com with a registration number РОСС RU.З603.04ФШ00
• Permit to use the Bona Fide Supplier sign.