Trading Business Unit
A large proportion of global steel demand stems from small and medium-sized customers which are unable to process the minimum order volume for direct purchases from the steel mill. These companies have to rely on steel trading for their procurement. For a producer, it therefore makes sense to trade, as this allows direct contact with the majority of end customers.
For this reason, the companies in the Salzgitter Group have maintained their own sales organizations since
their inception, and these activities are pooled in the Trading Business Unit today.
Nowadays, Salzgitter Mannesmann Handel GmbH, founded in Düsseldorf in 1958, is the leading company within the Trading Business Unit. The core element of the segment is the Salzgitter Mannesmann Handel Group. Together with the heavy plate specialist Universal Eisen und Stahl GmbH (UES), it ensures that the Salzgitter Group is represented internationally.
Three different sales channels are generally employed:
Firstly, the SMHD Group has a network of full-range trading warehouses in Europe from which customers can procure and pre-process various steel products from the Salzgitter Group and other steel manufacturers.
In addition, the SMHD Group operates an international trading business which finds suitable producers and logistics solutions for customer projects. To achieve this, the company draws on a wide range of representatives as well as agencies on all five continents. The representatives and contacts of the SMHD Group are also used by other companies within the Salzgitter Group for acquiring project business and pre-materials. The integration of our trading activities into Industry 4.0 solutions is a new feature and is currently being established. This will bring our customers even closer together with Salzgitter Trading and the Group’s production companies.
The business unit is rounded out by the UES Group. This company has been active as the heavy plate specialist among the Group’s steel trading firms since 1958. Offering a broad range of products, it is one of the first ports of call for heavy plate customers worldwide. The UES Group owns several stockholding companies in Germany, other European nations and the USA.
In 2016, the Trading Business Unit emerged as one of the pioneers in online steel trading with the introduction of the e-World digital marketing platform.
The Trading Business Unit sells more than three million tons of steel products every year. The unit ranks as an important and valued partner to its customers around the globe – from small and medium-sized companies all the way through to large scale corporations.