SAIPA Automotive Group’s Steel Depot Shrinks at EMSCO

The volume of available steel sheets of SAIPA Logistics Company at the warehouse of Esfahan Mobarakeh Steel Company (EMSCO) hit a 10-year record low, the Public Relations Department of SAIPA Company reported. 

With the guidelines and strategies provided by the CEO of SAIPA Automotive Group and assistance of senior management of SAIPA Logistics Company along with the continuous and nonstop efforts of employees working at Material and Parts Logistics Operation Units, planning and control of orders and support of Logistics and Backup Units of SAIPA Logistics Company, the number of sheets available in warehouse of Esfahan Mobarakeh Steel Company (EMSCO) reached its lowest level in the last 10 years.
SAIPA Logistics Company is responsible for transporting and moving all steel sheets required by SAIPA Automotive Group in way that the company transports 40,000 tons of steel required by this leading car manufacturing group and distributes the steel sheets to other subsidiaries companies of the Group on a monthly basis.

According to the contract concluded in past years, Esfahan Mobarakeh Steel Company (EMSCO) used to store and depot about 10% of this amount in its warehouses. Based on high ability of SAIPA Logistics Company, this amount was gradually transported to SAIPA Logistics Company and then distributed to SAIPA Group companies.
In the past years, due to the problems in the field of transportation, more quantities than 10% were always warehoused at Esfahan Mobarakeh Steel Company (EMSCO) in a way that this rate was reaching 35% at some periods.
Based on the planning carried out by SAIPA Logistics Company with detailed planning, successful transportation operations, and taking advantage of full capacities of the rail transportation fleet, the company has been able to reduce the number of steel sheets at the warehouse of Esfahan Mobrakeh Steel Company (EMSCO) to its lowest level, i.e. with a tonnage of 2,600 tons in the last 10 years and achieve an unprecedented record.

It should be noted that transportation of steel sheets required by SAIPA Automotive Group is 70% by rail and 30% by car, and this record has been achieved based on the planning done by reducing round-trip time of the transport wagons from 14 to 8 days, which indicates fast and efficient transportation of steel sheets to the production cycle.
Accordingly, it is envisioned that this decreasing trend will continue, so that the round trip time of loading wagons will reach seven days by the end of the current year (to end March 20, 2023) which will definitely increase the transfer of steel sheets to the production cycle and decrease the amount of its depot in Esfahan Mobarakeh Steel Company (EMSCO), the Public Relations Department of the SAIPA Automotive Group ended.

Source: Tehran Times