Presentation.

About us in press

For a long time metallurgy has been the main source of income for businessman and for Ukrainian state in general. Today manufacturers face a number of tasks to be accomplished. From the one hand, it is necessary to take the maximum advantage from Ukraine’s accession to WTO, from the other – to be ready for growing competition, to solve the problem of technical reequipment of enterprises. The quality of domestic metal production is also under the question. Attempts to economize on raw materials lead to poor results. “Miser pays twice” – says director of group of companies “NIKS” Evgeniy Nikitin.

Group of companies “NIKS” works on Ukrainian market of metallurgical materials since 2004. “NIKS” supplies materials for foundry: lignosulphonate, ferroalloys, cast iron, graphite and graphite electrodes. The company is the official trader of the leading Russian enterprises – Novocherkassk, Chelyabynsk and Novosybyrsk electrode plants (the head company is “Energoprom Management”).

- The concept “trader” is still obscure to Ukrainian metallurgy – says Evgeniy Nikitin. – For many years supply departments have been working with intermediaries, subpurchasers, and rarely – directly with manufacturers. The principle “the cheaper – the better” remains dominant. With such an approach it is difficult to provide quality production. At the same time the vital task for Ukrainian metallurgists is to enter foreign markets, where the quality of production is the main factor of competitive capacity. That’s why our company assumed “trader” role – we represent Russian manufacturers of graphite electrodes on Ukrainian market, provide on-time delivery and give professional consultations concerning supplied products.

- That is, trader – is the same as official representative?

- Not exactly. We are an independent company and represent production of not only one manufacturer, as representatives do, but we work with several manufacturers. At present time they are three Russian plants. At the same time we are enlarging the range of supplied production and now are carrying negotiations with enterprises in Germany (SGL), USA (UCAR), India and China. It will allow to choose materials corresponding both production needs and financial means.

- Were there reclamations in your practice?

- In our 4-year practice there was only one reclamation 2 years ago. But the fault was caused not by the product quality, but by mishandling. Trader bears responsibility for the quality of supplied production, contacts directly with the manufacturer, and should any problem arise, the group of technicians from the enterprise-manufacturer come to the plant. No one intermediate can guarantee technical support. As they say, “Every man to his trade”: manufacturer should produce goods, and trader - help him, provide on-time delivery of required materials.

- What do you mean saying “to help”?

- To help? I mean it’s impossible to do several works equally well. For example, to produce metal and to provide cargo transportations. Maintenance of own autopark, warehouses require additional costs, organizational efforts. We propose to solve part of these tasks with the help of our specialists.

- Does the extention of company’s services suppose other possibilities besides technical support?

- Yes, indeed. First of all, it is quality check of all supplied materials. For graphite electrodes, it is specific resistance test. It is impossible to do this visually or by hand test – special equipment is required. We possess such equipment and offer such service to our partners. Second, the group of companies “NIKS” is now in the process of quality management certification ISO, which will be finished in May 2008. Implementation of this system will allow to increase sufficiently the quality of provided services, to bring them into accord with international, national and corporate standards and requirements. Third, for the convenience of export-import operations we are building a bonded warehouse (opening in April 2008). It is both storage and customs clearance of goods. Forth, today we can observe the speeding-up tendency of all business processes. Very often enterprises require so-called “prompt supplies” within 24 hours. Dealing with manufacturers, they have to wait for their turn and it may take several weeks; working with grey dealers, there is no guarantee of quality and on-time delivery. Traders guarantee supply of quality material in shortest time. Besides, we are working on popularization of such financial service as factoring.

- How can it be useful to your partners?

- Many industrial enterprises require payment delay up to 30 days and it is not always possible to take credit in bank. And we work on prepayment. Today this problem can be solved with the help of “First Factoring Company”. After signing an agreement with the enterprise, it makes prepayment of 80 -90 % from the required amount. The enterprise receives production and later settles accounts with the factoring company. Though, at present time this scheme is not popular because of its newness and specificity of required documents

- How can you characterize market conditions in the segment your company occupies?

- Regarding supply of graphite electrodes for metallurgy, the competition is rather strong. From the one hand, here, like in many other industries, considerable share of market is occupied by inexpensive Chineese production. But sometimes its quality makes manufacturers look for alternative variants. Besides, there is a powerful company “Ukrainian Graphite” (Zaporozhye city). The quality of supplied graphite electrodes allows us to feel confident on the Ukrainian market. Ukrainian metallurgists have been working with Russian enterprises since Soviet times. So, there is a certain tradition. It helps us. But we try to satisfy the modern requirements. Today we can speak about modernization of Ukrainian heavy industry, launching of new production in the region, that’s why we try to be ahead - to find manufacturers of materials that would be required in several years.

“General Director”, materials of Anastasyja Golykova