Severstal

OAO Severstal

Type	Public
Traded as	RTS:CHMF, MICEX:CHMF, LSE: SVST, FWB: RTS2
Industry	Steel
Founded	1993
Headquarters	Cherepovets, Russia
Area served	Worldwide
Key people	Christopher Clark (Chairman) Alexey Mordashov (CEO)
Products	Steel, metalware, large diameter pipe
Revenue	US$ 13.510 billion (2010)
Operating income	US$ 2.379 billion (2010)
Net income	US$ -515.0 million (2010)
Total assets	US$ 19.329 billion (2010)
Total equity	US$ 7.320 billion (2010)
Employees	84,000 (2010)
Website	severstal.com

OAO Severstal (RTS:CHMF, MICEX:CHMF, LSE: SVST, FWB: RTS2) Russian: Северсталь, "Northern Steel") is a Russian company mainly operating in the steel and mining industry, centred in the northern city of Cherepovets. Severstal is listed on the RTS and LSE. As of 2009, it is the largest steel company in Russia according to The Metal Bulletin. The majority of the company's stock belongs to Alexey Mordashov. Severstal has owns major industrial facilities in Russia, Ukraine, Kazakhstan, France, Italy, and the United States, as well as in several African countries. The company also has mining assets in Russia and the USA, thus securing its supply of raw materials.

Severstal also owns Severstal Cherepovets, a Russia Super League ice hockey club.

History

During the early 1930s, deposits of iron ore were discovered on the Kola Peninsula and, at about the same time large quantities of coal were discovered in the area of Pechora. These two factors made it possible to establish a viable steel industry in the northwest of Russia. In 1940 the Soviet government published a resolution "On The Organization of Steel Making in the North-West of the USSR", which created a steel mill in Cherepovets, a city accessible by both the St Petersburg-Ekaterinburg railway and by the Volga-Baltic waterway.

Facility construction accelerated after the end of the war, and at 3:25 PM on August 24, 1955, the Cherepovets steel mill was born. Development continued in the following decades, making Cherepovets a major center of steel production in the Soviet Union.

On September 24, 1993 a decree by Russian President Boris Yeltsin, transformed the state-owned Cherepovets Iron and Steel Complex into the Severstal open joint-stock company.

A recent, highly publicized attempt to merge Severstal with the French conglomerate Arcelor did not materialize and Arcelor instead merged with Mittal Steel on 25 June 2006 to create Arcelor Mittal.

Management and subsidiaries of the SeverStal Group

Board of directors

The Board of Directors is responsible for the general management of the company. As of January 2012, it had the following composition,

• Christopher Clark (chairman);
• Alexey Mordashov (CEO of Severstal);
• Rolf Stomberg;
• Martin Angle;
• Ronald Freeman;
• Peter Kraljic;
• Sergey Kuznetsov (CEO of Severtsal International, CEO of Severstal North America);
• Alexander Grubman;
• Mikhail Noskov;
• Alexey Kulichenko (CFO).

Subsidiaries

OAO Severstal

• Severstal Russian Steel
  • Steel Segment
  • Pipe Segment
  • Services Segment
  • Trading Segment
  • Scrab Procurement Segment
  • Metalware Segment
• Severstal International
  • Severstal North America
    • Severstal Dearborn
    • Severstal Columbus
  • Lucchini Group
    • Piombino
    • Ascometal
• Severstal Resources
  • Vorkutaugol
  • Karelsky Okatysh
  • Olenegorskiy mining and processing plant
  • NordGold NV
  • PBS Coals
• Severstal Aviacompany

External links

• Severstal website - English and Russian language