Prior to summer 2008 – Arcelor Distribucija to open trading-storage complex on 2,000 square meters in Novi Sad, the first in series of distribution centers in Serbia

"Arcelor Mittal Distribucija" Belgrade increases its presence in Novi Sad by equipping modern trading-storage complex on about 2,000 square meters, which should be finished prior to summer 2008. This company will also open the first retail facility in Serbia in the capital city of Vojvodina in March 2008.

According to the words of Nenad Krunić, commercial manager of "Arcelor Distribucija" Belgrade, the largest buyers of steel in Serbia are not situated in Vojvodina, but Vojvodina is definitely the largest consumer of steel in Serbia and that was one of the reasons why "Arcelor" decided to invest in Novi Sad.

"Arcelor" is present in Novi Sad since 2005 and it rents about 1,000 square meters of indoor and about 2,000 square meters of outdoor space, and the new trading-storage complex will be built next to the hall that is now used as warehouse.

(Nenad Krunić)

- "Arcelor Distribucija" is present in Serbia since 2004, as the daughter company of "Arcelor Distribucija" East Europe. We started from nothing and now, three years later, we are the company with more than 500 buyers and sales worth 15m EUR. We are now focused on development of storage space, that is, distribution in Novi Sad, because our analyses show that Belgrade and Vojvodina have the best prospects for development. Our opinion is that we should be there because we want to follow that development, as well as to develop ourselves – Krunić explained.

According to his words, "Arcelor Distribucija" has already offered the whole palette of steel products in Vojvodina, but it also wants that the services it offers to the clients be at the same level as services offered in Western Europe.

- The plan is that we have 4,000 square meters of indoor storage space and 4,500 square meters of outdoor storage space in Novi Sad in 2008. We are currently able to cut steel products and to process them partially, but the modern equipment for primary metal processing that will be installed in the complex under construction will enable all kinds of processing activities - says Krunić.

(Nenad Krunić)

There is total of 11 workers in Novi Sad at the moment – four of them are working in the sales department, while seven work in the storage department. Krunić says that "Arcelor Distribucija" will definitely hire another 4 sellers in Novi Sad in 2008. He also says that the company's plan is to open retail facility in Novi Sad and several distribution centers in Serbia prior to 2011, where physical persons would be able to buy everything they needed for quality business.

The aim of the opening of series of retail facilities is to make end users satisfied. "Arcelor Distribucija“ Belgrade is obliged to keep pace with the development of mother company "Arcelor Mittal“ in Luxembourg.

- "Arcelor distrubicija", as part of "Arcelor Mittal", has task to sell its own products through its distribution network. One of the rules was that "Arcelor", before it united with "Mittal", distributes about 10% of Forge's production through its system. Before acquisition, "Arcelor" used to produce 45m tons of steel and 4m tons were sold by Distribucija. When "Arcelor" united with "Mittal", production grew to 118m tons, which means that the distribution department should realize sales worth 12m tons within next two years. IN order to follow that growth trend, we plan to develop distribution network in Belgrade, central and south Serbia within next 3 or 4 years. We plan further development of storage space, that is, distribution, and each storage space will have both retail and wholesale function. We will do our best to open retail facilities in larger cities, such as Zrenjanin, Subotica and Valjevo, independently from the wholesale facilities.