The President of the Russian Association of Metal Traders Alexander Romanov paid a visit to Kiev in April. Editorial Board of Metal asked him to share his experience in establishing the Association and answering some questions.
ASSOCIATION IS A PRESTIGE
ASSOCIATION IS A PRESTIGE
The President of the Russian Association of Metal
Traders Alexander Romanov paid a visit to Kiev in April. Editorial Board of Metal asked
him to share his experience in establishing the Association and answering some questions.
– Would you, please, tell us the history of
establishing the Russian Association of Metal Traders?
– Appearance of the Russian Association of Metal Traders
(RAMT) was stipulated by quite objective trends traced in Russian economy in mid-90s. More
than 1 million of enterprises and organizations functioned on the market then. Dozens of
thousands experienced need in metal products. Most of them needed wide range of products
in quantities far from transit volumes. Such a situation provided for appearance of
numerous warehouse metal companies. Each of them dove in process of identifying profile
and acquiring footholds on the market via its own cut-and-try method.
In April 1997, the group of authorities from the most
“advanced” metal companies left for Germany with a business visit. Then, after
studying activities of German Alliance of Steel Traders and its member-companies, visitors
evaluated the necessity to create similar association in Russia at a round-table meeting.
Two months later, in June, the non-commercial organization, namely, the Russian
Association of Metal Traders was founded.
– Which objectives and tasks does the Association
face?
– The main objectives and tasks are spelled in the
Statute. The key ones are as follows:
– representing and protecting interests of
resident and non-resident companies holding membership in the Association, coordinating
their activities, and settling arguable issues;
– organizing measures to upgrade professional
level of Association members in the field of metal trade, logistics, warehousing etc.;
– conducting meetings, tutorials, and
conferences with manufacturers of metal products, assistance to metallurgists in expansion
of production and sales;
– protecting interior market from unfair actions
of its operators and from external competition, sharing data on unfair market operators;
– introducing new forms of metal trade
organization in Russian practice, preparing metal to industrial consumption.
Activity of Association is subordinated to introduction of
measures representing interest of most its participants. All the projects within the
frames of Association, being non-commercial by their essence, nevertheless contribute to
settlement of commercial problems and tasks faced by its members.
It should be mentioned that in late 90s a lot of
non-commercial organizations, unions, and associations were founded in Russia. As a rule,
all of them were created under the slogan of support to the domestic industry. However,
when making deeper analysis, it turned out that most these associations were founded
solely with aim to achieve selected objectives of its founders. Establishing numerous
alliances, certain people aimed to set control over market segments, commodity flows, and
prices. Besides, on fair-faced excuses, these accumulated funds, which were further used
for various political games. Thus, similar noncommercial associations had no long life.
RAMT does not aim to share and control markets, lobby
special conditions for its members, having narrowed opportunities for other operators of
metal market. Instead, RAMT conduct meetings to arrange interchange of data on the issues
of Russian interior market, discuss possible ways to support metallurgical and
metalworking industries, expand services and upgrade professional level. This strengthens
competitive advantages of Association members.
– Could you, please, tell us about the major
accomplishments of the Association?
– The most important is that we managed to position metal
traders on metal market as a vital element in the “manufacturer-customer” chain.
Direct supplies of big consignments of metal products from the manufacturer to big
consumers always exhausted and will further exist. However, metallurgists’ assignment is
to maximally load production capacities and reduce product costs. This, in its turn,
increases time-frame of orders’ processing, scale of minimal consignments, as well as
narrows quantity of brand-standard-sizes. On the contrary, the customer has to rationally
use current assets. It is a disadvantage to have big stocks. Metal trade companies ease
this problem, since consider difference in interests of manufacturers and consumers.
Another important accomplishment of the Association is to
arrange more close relations of metal traders and manufacturing enterprises. Association
arranged and conducted conferences and seminars at numerous leading Russian enterprises.
These include ferrous metallurgical works, namely, Severstal, Magnitka, Mechel, tube
plants and numerous nonferrous manufacturers. A number of round-table meetings with
managers and specialists of leading metallurgical works also took place. Thanks to such
measures, Association members can evaluate specific features of either enterprise and use
this experience in current strategic development of their own companies.
Besides, Association is involved in introduction of leading
metal trade methods in performance of its members. With this aim, Association organizes
regular business trips abroad with aim of getting acquainted with the international metal
trade experience. Participants of such seminars visit service centers and warehouse
complexes in Germany, Norway, Sweden, Finland, UK, Austria, Italy, and USA. This new
experience is introduced in operation of Russian companies.
At last, one more direction of our activity is coordination
of work among RAMT members. Communication within the Association helps to develop close
relations among the companies, which enables to introduce joint commercial projects,
namely, development of dealer networks and representations, expansion of orders for
supplying companies, mastering new markets, introduction of production services etc. All
this contributes to professional servicing of clients and upgrading companies’
competitiveness on the market.
– Which place did the Association manage to acquire
in Russian community?
– Presently, there are some 70 organizations within RAMT,
including manufacturers of ferrous and nonferrous metals, their trade houses and dealers,
as well as independent metal trade companies and metal working enterprises. The uniting
factor is that all of them are metal market operators, that is metal traders.
Activities of Association members concern all the
directions, including both ferrous and non-ferrous metallurgy, from scrap collection and
processing to production and sale of special steel brands and alloys. What is more, RAMT
coverage is rather wide: from Kaliningrad on the West to Tomsk and Novokuznetsk on the
East, from Arkhangelsk on the North to Vladikavkaz on the South. Presently, leading
Russian companies within the RAMT challenge to build civilized metal market in the
country.
– Do you know any Ukrainian metal trade companies?
– Recently, I have visited two companies located in Kiev,
namely, Metal Holding and SavVATS. It is worth mentioning that the level of warehouse
processing of rolled metal and the general level of production services rendered by these
two companies does not lag behind Russian companies. It is worth of attention that the
companies do their best to develop their operation towards expansion of the product range,
pre-sale preparation services, maturing schedule for supplies of tubes, metalware, and
integration with their customers. I believe that there are more other worthful Ukrainian
companies that can create Ukrainian Association of Metal Traders. In their turn, Russian
colleagues can support them. Taking into account that practically all the leading
participants of Ukrainian market have Internet access, they can get acquainted with RAMT
activities and activities of member-coimpanies at: http://www.ramst.ru/
– Which privileges does the company acquire when
entering the association?
This issue was highlighted by the companies holding
membership in the Association:
L.Vinogradskiy, Director General with CJSC Alunekst (Belaya
Kalitva):
– Membership in the Association enabled us closely
communicating with Russian aluminum producers and customers. As a result, new customers
were found and numerous contacts, including private ones, developed.
Business trips abroad arranged by the RAMT also brought
additional benefits. I do believe that Association unites people interested in development
of production and interior market. It is a good experience to communicate with colleagues
and study operation of other enterprises.
V.Golenkin, Director General with LLC SevZapMetal Company
of Saint-Petersburg:
– Foremost, it is communication and sharing opinions.
Association continuously generates ideas. In my opinion, membership in the RAMT enriches
its participants.
A.Drozdov, Director General with LLC DiPOS Production and
Commercial Company of Moscow:
– It is always useful to get some intellectual energy
from the surrounding companies. Association did contribute to acquire new information,
experience, and private contacts.
O.Kazakovtsev, Commercial Director of CJSC Baltstalprokat
of Saint-Petersburg:
– Thanks to our membership, we obtained the
opportunity towards informal communication with metal traders. Moreover, Association has
already conducted seminars at practically all the enterprises. However, taking into
account continuous changes in the policy of enterprises, I would vote for arrangement of
the second round of seminars.
G.Perelygin, Director General with LLC Planeta-M of Orel:
– Membership in RAMT enabled us getting acquainted
with metal trade experience in various Russian regions and abroad, as well as reinforcing
authority of our company.
L.Avetov, Director General with CJSC Brok-Invest-Service
and Co of Moscow:
Independent Association is very useful for establishing horizontal
relations among the metal traders. This enables better realizing problems of market
operators, along with their real needs.
A.Lukin, Director with LLC Actor of Moscow:
– Foremost, we do appreciate the opportunity to
communicate with our business colleagues. This enables acquiring all the information on
the market, problems of our colleagues and measures these with our own difficulties.
Besides, business trips organized by the Association bring additional benefits.
A.Rubtsov, Director General with OJSC Komtex of Moscow:
– Entering the Association, we based on the two
targets – it is always useful to be the member in serious association and have the
opportunity to discuss common problems with professionals. The second target was to
develop propaganda to our approach as to metal trade development (I mean, the market
division into operators and traders). We reached the first objective. The second target is
in process, since such an approach is used by companies beyond the Association. However,
communication with RAMT members, along with participation in its measures, gives us a lot.
E.Pikul, Director General with CJSC Splav Company of
Moscow:
– Foremost, membership in RAMT enables all members of
Association sharing opinions with each other and acquiring authentic information on the
target and allied markets.
Secondly, due to successful cooperation within the
frames of Association, numerous competitors of our Company turned into our business
partners. Besides, various cultural and sport measures, specifically, any sport contests
allowed creating team spirit.
Thirdly, RAMT membership grants serious support to our
image for regular and potential clients of our company.
E. Stepantsov, Director General with CJSC Trade Center
United Metallurgical Company of Moscow:
– TC OMC entered Association as an organization
uniting active participants of Russian metal market. This allowed quick arranging of
contacts with metal market participants, intensifying data interchange and sharing of
experience, as well as creating positive image of the company. Participation of measures
conducted by Association enables TC OMK acquiring new contacts, assists in monitoring of
market situation and extracting essential information for decision making.
Y.Leybov, Director General of LLC Mekom Company of Moscow:
– Our main objective was promotion of domestically
made nonferrous rolled metal. Therefore, we were interested in advertising opportunities
given by the Association. Presently, Metkom Company is an active participant of all the
measures conducted by the Association.
V.Gladkov, Director General with CJSC Tomag of Tomsk:
– Foremost, membership implies information support.
We hold interest in seminars at the enterprises organized by RAMT. Besides, Association is
a prestige. Membership is an indicator of level of our company.