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SeverStal
Company typePublic
IndustrySteel
Mining
Founded24 August 1955 as Cherepovets Steel Mill
24 September 1993 as OJSC Severstal
HeadquartersRussia Cherepovets
Key people
Alexei Mordashov, CEO and Majority Owner and
Chris Clark, Independent Director; Non-executive Chairman of the Board
ProductsSteel
Metalware
Large Diameter Pipe
Revenue~ US$12.4 bn (2006)
5,319,000,000 United States dollar (2021) Edit this on Wikidata
4,075,000,000 United States dollar (2021) Edit this on Wikidata
Total assets8,668,000,000 United States dollar (2021) Edit this on Wikidata
Number of employees
~100,000
Websitehttp://www.severstal.com/

Severstal (MCX: CHMF MCX: CHMF) 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 in the RTS and LSE. As such it is the second largest steel company in Russia, behind Evraz Group. The majority of the company's stock belongs to Alexei Mordashov. As "White Knight" Severstal was to merge with Arcelor, thus preventing a takeover of Arcelor by Mittal, but the Arcelor deal with Severstal was called off following criticism within the Arcelor board. Arcelor finally merged with Mittal Steel on 25 June 2006 to create Arcelor Mittal.

Severstal gives its name to a Russia Super League ice hockey club, Severstal Cherepovets.

History

During the early 1930s, iron ore was discovered on the Kola Peninsula and coal was discovered in Pechora. Steel making was now possible in northwest Russia. In 1940 the Soviet government published a resolution "On Organization of Steel Making in the North-west of the USSR", and located a steel mill in Cherepovets, a city convenient to the St Petersburg-Ekaterinburg railway and 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.

Construction continued apace down through the decades. Cherepovets became a major steel center of the Soviet Union.

On September 24, 1993 according to the decree of the Russian President Boris Yeltsin, the state-owned Cherepovets Iron and Steel Complex became an open joint-stock company: Severstal.

Severstal Company

In spring 2002 the board of directors of Severstal decided to restructure the assets of the company. Severstal Group was established on June 3, 2002. It originally had three divisions: a metallurgical division, Severstal Resource and SeverstalAvto, an automaker.

In August 2001, the company founded the Severstal Corporate University, involved in research, education and consultancy.

In 2003 Severstalmash Group became the fourth division of the company, organized from extant service shops of the steel-making division.

Severstal Group also includes Sveza, which is a timber compamy; Sheksna Insurance, which is an insurance company, Metcombank and an airline, Aircompany Severstal.

In January 2004, Severstal, through its subsidiary Severstal North America (‘SNA’), completed the purchase of the assets and business of Rouge Industries for US$285 million in cash. SNA did not assume any of Rouge Industries’ pension liabilities, and agreed to provide a new retirement benefit plan for its employees (formerly the employees of Rouge Industries).

Severstal has 70.8% of Lucchini, the second largest Italian steel group. With its 20 production mills spread in five European countries, Lucchini added 4 millions tonnes capacity p.a to Severstal’s production. Lucchini is specialized in high quality long and special carbon steel products.

On the 25th of December, 2006, Severstal formed four business segments: Russian Steel and Metalware, Severstal North America, Lucchini and Severstal Mining.

Operations

Metallurgy

Severstal's Russian primary steel production facilities, including the Cherepovets steel plant, are located in Cherepovets, in northwest Russia, approximately 600 kilometres from Moscow and approximately 450 kilometres from St. Petersburg. It also operates a heavy plate mill, Mill 5000, and a large diameter pipe plant, the Izhorsky pipe plant in Kolpino.

Severstal's steel operations in Russia employ over 53,000 people.

Severstal's subsidiary Severstal North America (SNA) owns and operates Rouge Steel's steel making facilities in Michigan in the United States. SNA employs over 2,000 people. In March 2008, Severstal acquired the Sparrows Point mill in Maryland for $810 million. [1] In May 2008, Severstal added the facilities from WCI Steel to its capital, buying the company out for a reported $140 million. This acquisition increased Severstal's annual production capabilities by nearly 1.4 million metric tons. The former WCI Steel facilities are located in Warren, Ohio, situated between the company's previously-owned steel mills in Dearborn, MI, and Sparrows Point, MD. [2]

Lucchini Group, a steelmaker in France and Italy, is also owned and operated by Severstal, employing approximately 5,800 people.

Mining

Severstal Mining consists of four high-quality mining complexes in northwest and northeast Russia producing iron ore and coking coal and is the second largest producer of pellets and coking coal in Russia. With the capacity to supply all of the iron ore and coal needs of Russian Steel and Metalware, Severstal Mining forms the basis of Severstal’s balanced and vertically integrated business model. Based in northwest and northeast Russia, Severstal Mining comprises four mining complexes in Russia:

• Karelsky Okatysh, located in the Karelia Republic, produces iron ore and has an annual output of 8.8 million tonnes and estimated JORC reserves and resources of 1,338 million tonnes;

• Olkon, located in the Murmansk region of Russia produces iron ore concentrate and has an annual output of 4.0 million tonnes and estimated JORC reserves and resources of 416 million tonnes;

• Vorkutaugol, located in the Komi Republic, produces coking and thermal coal concentrate and has an annual output of 6.9 million tonnes and estimated JORC reserves and resources of 325 million tonnes;

• Kuzbassugol, located in the Kemerovo region of Russia, produces coking coal and concentrate and has an annual output of 1.8 million tonnes and estimated JORC reserves and resources of 343 million tonnes.

Management and subsidiaries of the SeverStal Group

Management Committee

As of April 2007:

Subsidiaries

  • Severstal
  • Severstal North America
  • Cherepovets Steel Plant
  • JSC Severgal
  • Izhora Pipe Plant
  • Severstal Enamel
  • Severstal Furniture
  • Lucchini Group
  • Bank Rossiya (7.15% as of 2006, 8,8% as of January 12005)
  • Severstal Resources
    • Vorkutaugol
    • Kuzbassugol
    • Karelsky Okatysh
    • Olenegorskiy mining and processing plant
  • Severstal Corporative University
  • Sheksna Insurance Company
  • Metkombank
  • Sveza Timber Company
  • Severstal Aviacompany
  • Redaelli Tecna (acquired 04 August 2008)

External links

Template:Companies portal

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