- Severstal
-
OAO Severstal 
Type Public Traded as RTS:CHMF,
MICEX:CHMF,
LSE: SVST,
FWB: RTS2Industry 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.
Contents
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.
Severstal Company
BUSINESS DIVISIONS
OAO “Severstal” comprises the following business divisions:
Severstal Russian Steel is Russia’s largest steel producer and includes the following segments: steel, pipe, metalware, trade and distribution and services as well as scrap procurement operations. The CEO of the division is Alexander Grubman (who is also CEO of Cherepovets Steel Mill).
Severstal Resources comprises Severstal’s assets related to iron ore, coal and gold extraction in Russia, CIS, Africa, South America and the USA. The division is one of Russia’s largest producers of pellets and coking coal and the second largest gold producer in Russia. The CEO of the division is Vadim Larin.
Severstal International comprises Severstal’s operations in Europe and North America. In the United States, Severstal is the fourth - fifth largest steel producer. Severstal North America operates one fully integrated iron steel mill, Severstal Dearborn, and a new generation mini-mill, Severstal Columbus. CEO of the division is Sergei Kuznetsov (also CEO of OAO Severstal North America).
In 2010, Severstal produced 14.7 million tones of crude steel. Revenues were $13.57 billion and EBITDA was $3.26 billion.
YEAR EVENT
1940 A resolution on Organization of Steel Making in the North-west of the USSR was signed by the USSR government and the central Committee of the Communist Party.
1947 Construction of Cherepovets Steel Mill was completed.
1993 The state-owned Cherepovets Iron and Steel Complex was registered by the municipal administration of the city of Cherepovets as Severstal joint-stock company.
2001 Severstal and Arcelor formed the Severgal joint venture.
2004 Severstal North America was created when Severstal acquired all the steelmaking assets of Rouge Steel (Michigan, USA).
April 2005 Severstal acquired a 19.9% stake in European steel producer Lucchini.
June 2005 Severstal acquired a listing on MICEX SE.
April 2006 Severstal acquired a 100 percent stake in British wire producer Carrington Wire (CWL).
October 2006 Severstal acquired a controlling stake in Lucchini.
November 2006 Severstal Global Depository Receipts began trading on the London Stock Exchange priced at $12.50. As well as boosting liquidity, the aim of the listing was to assist Severstal reposition itself as a global company.[1]
May 2007 Severstal acquired Arcelor’s 25% minority stake in Severgal.
May 2007 Severstal acquired a further 9% of Lucchini.
February 2007 Severstal acquired Celtic Resources, a gold mining company with assets in Russia and Kazakhstan.
September 2007 Severcorr (Mississippi, USA) begins operations.
October 2007 Severstal acquired Aprelkovo and Nerungri Metallic, two gold mines in Eastern Russia December 2007 Severstal consolidated its stake in Severcorr. Currently named Severstal Columbus.
April 2008 Severstal introduces the Unified Health, Safety and Environment Protection Policy.
April 2008 Severstal announces a corporate restructuring; 3 business divisions established.
May 2008 Severstal Metiz TAS agree the sale of the group TAS 34.6% share of JSC Dneprometiz to Severstal Metiz
May 2008 Severstal acquired Sparrows Point (Maryland, USA) steel mill. Currently named Severstal Sparrows Point.
May 2008 Severstal Resources purchases a controlling stake in an iron ore deposit in Western Africa and becomes a shareholder of Mano River Resources
June 2008 Severstal acquired Esmark Inc. (West Virginia, USA). Currently named Severstal Wheeling.
July 2008 Severstal acquired WCI Steel mill (Ohio, USA). Currently named Severstal Warren.
August 2008 Severstal Metiz acquires 100% of Redaelli Tecna SPA
August 2008 Severstal Resources takes control of Balazhal Gold Mine in Kazakhstan
November 2008 Severstal acquired PBS Coals (Pennsylvania, USA)
November 2008 Severstal Resources acquires a controlling stake in High River Gold
June 2009 Severstal introduces its Vision, Mission and Values and new brand of the company
October 2010 Expansion of gold mining business through the acquisition of 9350.1738% stake in Crew Gold.
June 2010 Sale of 50.8% of Lucchini S.p.A. to a company controlled by Alexey Mordashov
October 2010: Creation of Nord Gold Nv
October 2010: Gain license for Centralnoe coal field in Tyva
November 2010: Signing of MOU with NSDC to build a steel mill in India
March 2011: Sale of Warren, Wheeling and Sparrows Point facilities in the USA. Focus business in the USA on Severstal Columbus and Severstal Dearborn assets.
Capital spending is due to reach $ 2 billion in 2011, compared with $1.4 billion in 2010. Severstal will continue to improve operating efficiency, modernize its operational facilities and ensure that the Company maintains industry leading standards of health and safety.
Management and subsidiaries of the SeverStal Group
Management Committee
As of April 2010:
- Alexey Mordashov (CEO)
- Alexey Kulichenko (CFO)
- Alexander Grubman (CEO of Severstal Russian Steel)
- Vadim Larin (CEO of Severstal Resources)
- Sergei Kuznetsov (CEO of Severtsal International, CEO of Severstal North America)
- Vladimir Kozlov (Deputy CEO)
- Nicolas Vallorz (Deputy CEO)
- Alexey Yegorov (Deputy CEO)
- Vadim Saveliev (Deputy CEO)
- Thomas Veraszto (Deputy CEO)
- Andrey Mitiykov (Deputy CEO)
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 North America
- Severstal Resources
- Vorkutaugol
- Karelsky Okatysh
- Olenegorskiy mining and processing plant
- NordGold NV
- PBS Coals
- Severstal Aviacompany
References
- ^ Communicate magazine Moving Image, November 2008, Communicate magazine
External links
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Categories:- Companies listed on the Russian Trading System
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- Companies of Russia
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