There have been organizational and personnel changes in the SVEZA group! Mr. Frishman, how difficult was it for you to choose a supplier for this project? Was Raute a priority as a long-time business partner? How do you rate cooperation

December 12, 2016, General Director of the SVEZA Group,
world leader in the production of birch plywood, has become
Anatoly Frishman, who previously headed the OJSC
"Severstal-metiz". Alexander Shevelev, who previously held
position of General Director of SVEZA, appointed to
position of General Director of Severstal
Management".

Position of Sales and Marketing Director from December 1, 2016
The city is occupied by Roman Music.

After the appointment, Anatoly Frishman and Roman Muzyka
will focus on strengthening the leadership position of the SVEZA Group
on the global plywood market and the growth of production and financial
company indicators. The priority tasks will be to increase
customer focus and operational efficiency
companies, expansion of product portfolio, growth
competitiveness of manufactured products.

Because SVEZA is on the path of continuous improvement
working conditions and reducing risks for personnel, then great
attention will be paid to improving safety
production.

Alexey Mordashov, General Director of Severgroup CJSC,
noted the ambitious development plans of the SVEZA Group, and also
expressed confidence that dedication and responsibility
Anatoly Frishman will allow him to achieve success in his new
place.

Anatoly Semenovich Frishman

Anatoly Frishman was born in 1977. Graduated from Moscow
State University of Environmental Engineering
specialty "mechanical engineer". Has an MBA degree
Northumbria University Business School (Newcastle,
Great Britain). Since 2000 he worked at OJSC Severstal-Metiz
in the field of "Purchasing" in various positions - from engineer
to the head of department. From 2005 to 2008 he held the position
General Director of Stillace LLC, in 2008-2009.
worked in the business development directorate of OJSC
"Severstal-Metiz". From 2009 to 2011 he headed Techi LLC
Rus"2. From 2011 to 2014, he headed the rope department of OJSC
"Severstal-Metiz". In October 2014, he was appointed director of the JSC
"Redaelli SSM". From April 1 to December 11, 2016 he was
General Director of OJSC Severstal-Metiz.

Roman Music

In 1998 he graduated from the Ural State Technical University
University with a degree in organization and management of foreign economic activity
enterprises". Has long and successful experience in the field
sales and marketing in companies such as International
Paper, Lhoist Group, Procter & Gamble, Schwarzkopf &
Henkel Cosmetics./>/>/>/>/>/>/>/>

About the SVEZA group

SVEZA Group is a Russian company that is a global
leader in the birch plywood market. SVEZA products have won
consumer trust in 70 countries on five continents.
It is used in the construction of skyscrapers and Olympic
facilities, production of long-haul trailers,
high-speed trains and LNG tankers, creating an environmentally friendly
furniture and stylish interiors. SVEZA is the No. 1 supplier in
Russia for monolithic construction.

SVEZA Group produces 1.3 million m3 of high-quality
products annually, including plywood and chipboard.

The company has been operating in Russia since 1997. During this time, SVEZA
carried out modernization and a large-scale increase in production with
using the latest technologies and equipment. "SVEZA"
creates modern jobs in Russian regions,
which employ dynasties of experienced craftsmen.

SVEZA takes a responsible approach to the use of forest resources
resources, which is confirmed by international FSCTM certificates
(ForestStewardshipCouncil® - Forest Stewardship Council -
international non-profit organization whose purpose is
is to promote environmentally responsible
forest use and forest resource management).

Russian metallurgists and the market continue to follow contradictory courses in relation to each other. It seemed that the most serious downturn in the metallurgical market in the last five years, which occurred in 2015, would be enough to knock out steelmakers, but this did not happen. Positive dynamics in exports allowed metallurgists to stay on their feet and even show profits.

In the hardware segment of the metallurgical market, the situation is similar - demand within the country is narrowing, but export sales are growing. This year it will be more difficult for hardware manufacturers to increase sales. European countries, which remain a priority market for hardware companies, are tightening control over the import of steel products. However, the General Director of OJSC Severstal-Metiz Anatoly Frishman, who recently headed the company, sees no reason to panic. According to him, increased control in itself is not so scary. Much more concerned about the company's manager is the lag of the Russian regulatory framework behind world standards, which interferes with productive work in the domestic and export markets.

Anatoly Frishman spoke in an interview with Expert North-West about why updating the regulatory framework is more important than import substitution programs, what projects can revive domestic demand and what are the advantages of consolidating the hardware market.

– The Russian market is experiencing a decline in production and a drop in demand for metallurgical products. What do you see as prospects for development - export work, which has become more attractive after the devaluation, or the activation of the domestic market?

– There is definitely a certain decline in the market, but I would not dramatize the situation. The challenge for any business is to remain flexible and be able to take advantage of existing opportunities. For us, they include both more active work in export markets and import substitution. Our line includes a number of products whose sales are growing, although demand for them remains at the same level. In some places we replaced imports on time, in others we offered the market a fundamentally new product. Moreover, we began the implementation of these projects even before the so-called crisis. Examples include hot-pressed profiles, fasteners, and some types of ropes.

– Are import substitution programs capable of “warming up” the domestic market?

– There has not yet been any active “warming up” of demand through import substitution projects. It is necessary to understand that import substitution primarily depends on the desire of Russian manufacturers to move in this direction and, most importantly, on the presence of serious infrastructure, industrial and investment projects in the country. If there is nowhere to use these machines and equipment, then import substitution will not work, no matter how you support it. In this regard, for us, import substitution has nothing to do with the crisis. We have been moving in this direction for quite some time, developing products with high added value across our entire range.

– Are you trying to carry out comprehensive import substitution of the product range?

– It cannot be said that in import substitution we are using the “carpet bombing” method, mastering the entire range. Everything must make economic sense. In some places, the scale of consumption is so low that it will not provide a return on investment; in others, there is a lag in know-how and technology. But there are products where we see both the market and technological opportunities. For example, we have mastered the production of a new type of hot-pressed steel profiles. This is a new product for the Russian market, replacing foreign products. We have a similar situation with ropes. We have made significant progress in the production of special ropes and occupy leading positions in many market segments, quietly competing with foreign manufacturers. Here we continue serious work in the field of improving quality and developing raw material chains.

– Are there projects that are able to stimulate demand for hardware products within the country, or does the decline in activity in sectors such as construction and mechanical engineering prevent this from being expected?

– Of course, we feel a shortage of demand. What can help the industry are serious infrastructure and transport projects that can extend the entire production chain, such as the construction of roads, bridges, hydraulic structures, and fleet development. Government support is needed, but not in terms of creating import substitution programs, but in terms of introducing changes to regulations, standards, building codes and regulations. It is no secret that in many respects we are 15-20 years behind Europe, stuck at the level of introducing changes to rules and regulatory documents. There are cases when we have mastered the production of new products, but are experiencing problems with their promotion, since there are no necessary rules and regulations. Meanwhile, these products have been used all over the world for decades. There are many such examples: fiber, reinforcing strands.

– Can exports compensate for the fall in demand for hardware products in the domestic market?

– The answer is both yes and no. Export potential is great. The global market is practically limitless. But I wouldn’t say that the exchange rate collapsed and we suddenly started exporting. It is not that simple. There is high competition in the global market, a different regulatory framework, and other requirements for certification, quality, and logistics.

– How much has the share of exports grown in the overall sales structure of Severstal-Metiz?

– Exports have grown, currently their share is about 20%. In previous years, this share ranged from 5 to 15%.

– In May, the European Commission tightened control over the import of steel, including hardware. American metallurgists are lobbying for similar measures. How much of an impact will this have on your company?

– Measures from the United States will definitely not affect us in the near future. If we talk about the EU's plans, much will depend on the scale and format of these sanctions. Control itself is not a terrible thing, even if you have to undergo some additional procedures. If protective duties appear, then the question is their size and the mechanism of application.

– But Europe still remains a priority market for you, or is it possible to redirect exports to other markets?

– Logistically, Europe has traditionally been a priority export market for us. But we do not intend to stop there and are looking at other markets. I can’t say yet that sales have gone there, although this option is also being considered.

– Are you a supporter of tightening protective measures for importers of hardware to Russia? Will this help our own producers?

– I am not a supporter of sanctions, but at the same time I support the participation of the state in the control of unscrupulous suppliers from Asia and other countries. First of all, it is necessary to control products for compliance with Russian requirements and standards. In addition, it is necessary to stop outright dumping. Asian manufacturers often appear on our market with very low prices, and here, of course, measures are needed. In Europe and other countries this is done quite quickly. And this is not so much support for domestic producers as support for fair competition.

– You took the position of General Director of Severstal-Metiz quite recently. What changes do you consider necessary to make to the company's development strategy?

– There will be no change in strategy due to the arrival of a new CEO. I have worked for this company my entire adult life and participated in the creation of the current strategy. It is aimed at developing products with high added value, products of a different level of quality. This is what allows us to differentiate ourselves from our competitors. Plus, our strategy is aimed at developing long-term relationships with clients, developing service, and customer focus.

– Doesn’t changing market conditions also prompt adjustments to the strategy?

– We definitely won’t change the strategy three times a month. Our strategy is quite flexible. The principles underlying it allow us to quickly and correctly respond to changes in the environment.

– Has the crisis left its mark on the investment program?

– In my opinion, a crisis is the best time to invest. We continue to invest in the volume that was planned before the crisis, investing in special value-added products, import substitution, and improving the quality and efficiency of production.

– The Russian hardware products market is characterized by a high degree of consolidation. Doesn't this limit its development? For example, in Western countries the industry is developing along the path of creating small and medium-sized enterprises with greater specialization.

– The Russian model has become more complex than it was 10-15 years ago. In a number of areas, economies of scale allow us to be more efficient. First of all, this applies to simple mass products. Although this model does not work for many products. Here, niche businesses are more effective, focused on a specific market, product consumption format and with greater flexibility. We are trying to combine both formats. On the one hand, we have consolidated large scale production and comprehensive management, on the other hand, to strengthen the focus, separate blocks have been allocated within the perimeter of the company. This is what we did, for example, with the rope and mesh business. Thus, we use the advantages of both approaches.

– It turns out that you automatically adopt the disadvantages of the two approaches?

– There are also certain disadvantages. The same economies of scale, expressed in inherited heavy infrastructure and high costs.

– Did the difficult economic situation in Ukraine allow you to make additional money by ousting Ukrainian hardware products from the market?

– The changing situation in Ukraine has affected us in many ways. There are fewer Ukrainian producers on the Russian market, but at the same time, the Ukrainian market has practically closed for us. The situation with transport logistics has changed, because cars now practically do not travel through Ukraine. Accordingly, we have become less competitive in the European market.

– In this case, can your production asset in Italy become a springboard for developing the European market?

– We have never considered Redaelli as a springboard for entering the European market. This is a fairly highly specialized asset that develops specialty ropes. The company not only and not so much works for Europe, but for the entire world market. It has a complex portfolio of consumer segments (offshore production, infrastructure projects), and the European market accounts for less than half of its supplies.

– Your company had experience in creating a joint venture with Arcelor Mittal. Is it of interest at the current stage of development to create joint productions with foreign players or acquire production facilities abroad?

– There are no immediate plans for this. There is no need for such a partnership yet. When a market and technological need arises, we will be ready to consider such an opportunity.

– What are your expectations for this year? Do you expect to maintain production volumes and market share?

– The current year is characterized by instability. Quite serious fluctuations occur in volumes and price levels. But we look positively at the development prospects both from the point of view of consumption and from the point of view of our share. We definitely do not have a task to ship a certain number of tons. Now the main goal is to be very flexible and efficient, because rigidity and high costs in conditions of instability and fluctuations can kill a company.

Cherepovets

OJSC Severstal-metiz is a group of companies that unites the hardware assets of the Severstal company. The company's production sites are located in Russia, Italy and Ukraine. The company produces low-carbon wire, steel fiber, nails, steel ropes, fasteners, mesh and mesh structures. The group's revenue in 2015 was $505 million.

So, the start has been given. A pencil with a diameter of 80 mm falls between the rollers, which begin to rotate it quickly. In a few seconds, the size of the pencil is reduced by more than half, and at this time a motley sheet of veneer runs behind the machine. Over the course of a year, this cycle will repeat several million times. The RauteLite spindleless peeling line allows you to increase the veneer yield by a couple of percent, which gives tens of millions of rubles in profit per year. The SVEZA company became the first buyer in Europe to invest in this development of the Finnish company Raute. And, being at the Kostroma enterprise of the group, you are not at all surprised by this fact.

RUB 12.2 billion - planned volume of investments in technical re-equipment of the SVEZA company for 2018



250 thousand m 3 of plywood per year - the total capacity of both sites of the plant


Three peeling lines: near - for transverse veneer (short wood), far - for longitudinal (long wood), middle - spindleless, for peeling pencils


1.15 million m3 - planned production volume of birch plywood in 2018.







The plywood mill was founded in 1913. Now the company has two production sites: one produces 5x5 plywood and particle boards, the other produces large-format plywood (production volume: 120-130 thousand m 3 per year) and laminates particle boards. Both sites became part of the SVEZA group in 1999 under the name “Fanplit”, and the plant received its current name - SVEZA Kostroma - in 2015. Currently, the total capacity of both sites of the plant is 250 thousand m 3 of plywood per year.

We visited a site where large-format plywood is produced. This is laminated plywood of the FSF brand, which is used as formwork in construction, as well as as a material for the manufacture of floors and sides in transport engineering. In fact, the focus on the production of laminated moisture-resistant plywood is typical for all enterprises of the group. And that is why SVEZA plants purchase birch raw materials without restrictions on false kernels. What is a balance sheet for other enterprises is a veneer log for them.

To unload incoming raw materials from transport, store them and supply them for welding, gantry cranes with tong-type grabs are used. After hydrothermal treatment, which lasts 24 hours, the raw materials are conveyed to the workshop via a conveyor. The logs pass through a Valon Kone debarker, then through a metal detector frame, after which they are distributed into the storage bins of two Raute cross-baring machines. The operator controls the cutting taking into account the particular shape of each log, resulting in logs with a length of approximately 1.3 and 2.6 m. The former are used to obtain veneer for transverse layers, the latter for longitudinal layers. The churaks are dumped onto storage tanks corresponding to their length and delivered by conveyors to one of two peeling installations.

At the peeling installation, the block is automatically centered and clamped by the spindles, the support with the peeling knife is fed, and peeling begins. After removing the veneer flaw, a sheet of peeled veneer enters the buffer conveyor, which passes through the sensors of the Raute VCA system: a laser scanner and a brush moisture meter. The scanner determines the geometry of the leading edge of the canvas and detects the presence of holes in it. This information allows you to automate the process of cutting veneer into sheets and sorting by quality. In accordance with the data received from the moisture meter, the veneer sheets are sorted into groups with approximately the same moisture content - for drying in the most suitable mode. The system automatically places veneer sheets into bundles. The collected bundle is removed to a rail cart, which is used to deliver it to the drying area.

The chipped veneer is removed by conveyors from both lines to the chipping machine. Until recently, all pencils were sent there. However, now long pencils from the longitudinal veneer line are transferred by a conveyor system for finishing. First, the pencil is automatically trimmed and divided into two parts on a slasher machine. Then the short pencils are supplied to the storage line of the peeling line, from which they are issued individually to the spindleless peeling machine. Following the machine, rotary shears are installed for cutting veneer into sheets of the required format, which are automatically stacked in one pack. After drying, the veneer will be glued widthwise on an edge gluing machine and used on the inner transverse layers of plywood. Veneer drying is carried out with hot air in two Raute roller dryers. The coolant is thermal oil. It must be said that no steam is used in the technological processes at this site, and even the heating of hot presses is carried out using thermal oil.

The veneer sheets leaving the dryer end up on the conveyor of the sorting line. The Mecano VDA scanner recognizes defects and geometric deviations of the veneer, and the Mecano DMA scanner controls the moisture distribution in the sheets. The veneer is automatically distributed into packs (up to eight pieces) according to the grade. The cross veneer sheets are spliced ​​to the required width on a Hashimoto Denki edge gluing line. To correct defects in the veneer of the front layers, the Raute veneer repair line is used. The veneer sheet is automatically fed to the work table, the scanner determines the places of defects, and portal robots cut out these places, inserting patches in their place.

Bundles of sheets of longitudinal and transverse veneer of different grades are fed to one of six glue-applying machines. Glue is applied to both sides of each even layer, odd layers are placed in the bag dry. The veneer is fed into the glue carrier and the sheets are placed into the bag manually. Since the company produces moisture-resistant plywood, glue based on phenol-formaldehyde resin is used.

The resulting package is fed on a rail cart to one of two cold presses. Here the bag is pressed, the air is squeezed out, and then it is moved to one of Raute's three 30-bay hot presses. The press operator delivers the layers one by one (set per plywood sheet) onto the rising floors of the loading shelf. By the time the press opens, all floors must be filled. Sheets of plywood are unloaded onto the receiving shelf, and the layers from the loading shelf enter the bays of the press. The resulting unprocessed plywood sheets are placed in a package, which is fed on a rail cart to a roller conveyor for holding.

Next, the package is moved to the Cremona format-cutting line, where the sheets are automatically cut individually on all sides to the required size. And then the plywood is sanded and calibrated on a Steinemann sanding line. The next operation is lamination, which is performed on a special Raute line based on a multi-bay press. For lamination, mainly two types of film are used: with and without a dimensional grid. The resulting laminated plywood is cut on the Holzma line and then packaged and sent to the warehouse.

Most material movement between sites and lines is carried out using rail carts and conveyors. Where forklifts are used, their movement areas are marked with yellow lines on the floor. All personnel wear helmets and headphones. It is felt that great attention is paid to labor protection at the enterprise.

To summarize, I must say that the visit to this enterprise left a very good impression. The level of equipment and organization of production is pleasantly surprising. However, there are still significant reserves for increasing efficiency. As SVEZA CEO Anatoly Frishman noted in his speech at the launch ceremony, ten years ago the idea of ​​re-peeling pencils in large-scale production was simply not taken seriously. But today, when the company is a leader in birch plywood production volume, it faces the task of becoming a leader in both cost and product quality. To solve this problem, a large investment program is planned, part of which will be measures to reduce the consumption of raw materials. Lines similar to the one installed in Kostroma will appear at all enterprises of the group. For 2018 alone, investments in the amount of 12.2 billion rubles are planned within the entire group. In addition to investments in basic technological equipment, it is planned to build several mini-CHPs, as well as modernize wastewater treatment plants. At the same time, production volume in 2018 should increase to 1.15 million m 3 of birch plywood, that is, the group clearly does not intend to slow down the rate of revenue growth.

SVEZA General Director Anatoly Frishman speaks.

- Mr. Frishman, how difficult was it for you to choose a supplier to implement this project? Was Raute a priority as a long-time business partner? How do you evaluate the cooperation with the Finnish equipment manufacturer?

The selection procedure was fairly standard - first of all, we analyzed the suppliers' proposals, which did not take much time. But the preparation of the project took quite a long time, and the economic justification did not appear immediately. The worse the situation with raw materials becomes, the more profitable such a project is. I highly appreciate the cooperation with Raute. The dialogue is very good, the company has been working with us for several years, the mutual understanding is complete. We are now considering ways to develop this partnership.

- The project was implemented in record time. Did you encounter any problems during its implementation? How quickly do you expect to recoup your investment?

I had to spend some time setting up the equipment and achieving the required indicators. Still, the technology is quite new both for us and for the market. It is not as streamlined as in the rest of the production. The investment will pay off in about five to six years. Everything will depend on the cost of wood raw materials.

Jouni Putkonen, vice president of equipment supplier Raute, speaks.

- Mr. Putkonen, could you tell us about the Raute spindleless peeling installation: how many of them have already been manufactured, how do you assess the prospects of this equipment on the world market and in particular in Russia?


Over the few years that this design solution has existed, we have manufactured 17 lines. The one installed here in Kostroma was the 14th in a row, that is, after concluding a contract for it, we received three more orders from European buyers. But the line launched today is the first we have implemented in Europe. We highly evaluate the prospects for using peeling equipment: the cost of wood raw materials is steadily increasing and everyone is trying to save it, not only in Russia.

As Mr. Frishman noted, the plant in Kostroma is only the “first sign”, and subsequently the spindleless peeling technology will be introduced at all the company’s plants. Therefore, we have no doubt that we won’t have to wait long for the next orders. But besides SVEZA, other Russian companies are also actively negotiating with us about the supply of this equipment.

- How was the implementation of this, one might say, pilot project?

There were no special problems along the way. We shook hands in December 2016, and in December 2017 the line was commissioned. That is, within a year we both manufactured it and put it into operation.

- What is your forecast for the development of the plywood industry in the coming years? And also, what will these years be like for your company?

Last year was a record-breaking success for Raute. And this year we already have a fairly large workload - the first large orders were received in January. So we have a positive assessment of the current year and look confidently into the future.

Prepared by Artyom LUKICHEV

On December 12, 2016, Anatoly Frishman, who previously headed Severstal-metiz OJSC, became the general director of the SVEZA group, the world leader in the production of birch plywood. Alexander Shevelev, who previously held the position of General Director of SVEZA, has been appointed to the position of General Director of Severstal Management.
The position of Sales and Marketing Director has been held by Roman Muzyka since December 1, 2016.
After their appointment, Anatoly Frishman and Roman Muzyka will focus on strengthening the SVEZA Group’s leadership position in the global plywood market and growing the company’s production and financial performance. Priority objectives will be to increase the company's customer focus and operational efficiency, expand its product portfolio, and increase the competitiveness of its products.
Since SVEZA is on the path of constantly improving working conditions and reducing risks for personnel, much attention will be paid to improving production safety.
Alexey Mordashov, General Director of Severgroup CJSC, noted the ambitious development plans of the SVEZA group, and also expressed confidence that Anatoly Frishman’s dedication and responsibility will allow him to achieve success in his new place.
Anatoly Semenovich Frishman
Anatoly Frishman was born in 1977. Graduated from the Moscow State University of Environmental Engineering with a degree in mechanical engineer. He holds an MBA degree from Northumbria University Business School (Newcastle, UK). Since 2000, he worked at Severstal-Metiz OJSC in the Purchasing direction in various positions - from engineer to department head. From 2005 to 2008, he held the position of General Director of Stillace LLC, in 2008-2009. worked in the business development directorate of OJSC Severstal-Metiz. From 2009 to 2011, he headed Techi Rus LLC2. From 2011 to 2014, he headed the rope department of Severstal-Metiz OJSC. In October 2014, he was appointed director of JSC Redaelli SSM. From April 1 to December 11, 2016, he was the General Director of OJSC Severstal-Metiz.
Roman Music
In 1998 he graduated from the Ural State Technical University with a degree in organization and management of foreign economic activity of enterprises. He has a long and successful experience in sales and marketing in companies such as International Paper, Lhoist Group, Procter & Gamble, Schwarzkopf & Henkel Cosmetics.

About the SVEZA group
SVEZA Group is a Russian company that is a world leader in the birch plywood market. SVEZA products have won the trust of consumers in 70 countries on five continents. It is used in the construction of skyscrapers and Olympic venues, the production of long-haul trailers, high-speed trains and LNG tankers, the creation of environmentally friendly furniture and stylish interiors. SVEZA is the No. 1 supplier in Russia for monolithic construction.
The SVEZA Group produces 1.3 million m3 of high-quality products annually, including plywood and chipboard.
The company has been operating in Russia since 1997. During this time, SVEZA has modernized and massively increased production using the latest technologies and equipment. SVEZA creates modern workplaces in Russian regions, employing dynasties of experienced craftsmen.
SVEZA takes a responsible approach to the use of forest resources, which is confirmed by international FSCTM certificates (Forest Stewardship Council® - an international non-profit organization whose goal is to promote environmentally responsible forest use and forest resource management).