In a special interview, Centravis Sales Director Vyacheslav Erkes spoke of how the company has a solid base to promote future growth.
Global sales and growth prospects
In spite of multiple challenges both domestic and global, Centravis managed to increase its sales in physical terms at the end of 2014. According to Erkes, this was largely resulting from the company’s fundamental development strategy and extensive investments into the modernisation of production. Over the last few years, Centravis has been steadily growing in tonnage exceeding twofold the average growth rate of the global stainless steel tubing market, which has been 5-6% per year.
Speaking about the current year’s sales strategy, Erkes noted that the company will continue to keep its sales focus in the western markets, something Centravis – whose share of sales outside the CIS now stands at 70% – has been actively doing since the mid-2000s. The company is also becoming more active in the Asian and Middle Eastern markets, where it has intensified customer certification as well as in the US, the market it first entered in 2006. According to Erkes, over the last six months, the company has received approvals by end users from Alstom Power (USA), Thyssen Krupp Industrial Solutions (India), FESTO (Germany), and Petrobras (Brazil). Centravis also obtained qualification by ADCO, ZADCO and ADMA OPCO (ADNOC Group (UAE).
In 2014, America became Centravis’ second largest market along with Russia, while Europe remained the biggest sales area with over 50% of company product sold there. In their turn, Asian markets, including the Middle East, Turkey, India, and Southeast Asia, accounted for around 10% of sales. As Erkes said, “These last areas, together with the United States, will be the company’s two top priorities in terms of increasing sales.”
“Despite the growth in Asia and America, Centravis will defend its position in the key markets of Russia and Europe, offering its customers in those markets all of the best and most advanced products in the company’s portfolio. Centravis has also kicked off its marketing activities and is now actively promoting its key products and features, like furnace tubes, instrumentation tubes, urea grades, nickel alloys, and more in China.”
Prospects for 2015
Despite growth in the volume of sales, the company did not see the same in its revenues, and this was influenced by two major factors. The first is due to a decline in the price of nickel, and the second relates to Centravis’ dynamic growth in new markets. Additionally, the company’s revenue in US dollars was severely affected in Russia by the end of 2014, as a result of the drastic devaluation of the ruble.
In spite of the above-mentioned factors, as well as the expected 5-7% decrease in the world market of seamless stainless tubing in 2015, the company has set a task to grow, and Erkes believes it is currently very well positioned to do so.