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Severstal

#1936

Rank

$8.51B

Marketcap

RU Russia

Country

Severstal
Leadership team

Mr. Alexander Anatolievich Shevelev (CEO of AO Severstal Management & Director)

Mr. Alexey Gennadievich Kulichenko (CFO of AO Severstal Management & Director)

Mr. Vladimir Zaluzhsky (Head of Communications & Investor Relations)

Products/ Services
Advanced Materials, Industrial
Headquarters
Columbus, Mississippi, United States
Established
2004
Net Income
1B - 20B
Revenue
Above - 1B
Traded as
CHMF.ME
Social Media
Overview
Location
Summary
Public Joint Stock Company Severstal, together with its subsidiaries, operates as an integrated steel and steel-related mining company in Russia, Europe, CIS, the Middle East, North America, Africa, Central and South America, China, and Asia. It operates through two segments, Severstal Resources and Severstal Russian Steel. The company produces iron ore pellets, iron ore concentrates, crushed stones, and ferrite strontium powder; and coking and steam coal, and hard coking coal concentrates; blast furnace unfluxed and fluxed pellets, as well as iron ore and steel. It also provides flat and long-rolled products, hot and cold-rolled flat products, galvanized and color coated products, and long-steel applications for use in automotive and construction industry; pipes for use in oil and gas pipeline projects; and cold-drawn steel products, steel shapes, railway fasteners, low carbon and high carbon wires, nails, steel fiber products, steel wire ropes, wire strands, steel meshes and fasteners, and carbonyl iron powders. In addition, the company engages in repair and construction, air transport, a ferrous scrap metal recycling, steel machining, and shipping and handling operations. It serves construction and service processing, oil and gas, energy, machinery, automotive, and other industries. The company was formerly known as Open Joint-Stock Company Severstal and changed its name to Public Joint Stock Company Severstal in December 2014. Public Joint Stock Company Severstal was founded in 1955 and is headquartered in Moscow, Russia.
History

1930s–1993: formation and transformation

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 Government of the Soviet Union published a resolution "On The Organisation of Steel Making in the North-West of the USSR", which created a steel mill in Cherepovets, a city accessible by both the Leningrad-Ekaterinburg railway and by the Volga–Baltic Waterway.

In 1947, the construction of Cherepovets Steel Mill was completed.

Facility construction accelerated after the end of World War II, and at 3:25 PM on 24 August 1955, the Cherepovets steel mill was put into operation. Development continued in the following decades, making Cherepovets a major centre of steel production in the Soviet Union.

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

2004–2011: international expansion and acquisitions

In 2004, Severstal North America was created when Severstal acquired all the steelmaking assets of Rouge Steel, based in Michigan, USA.

In April 2005, Severstal acquired a 19.9% stake in European steel producer Gruppo Lucchini.

In June 2005, Severstal acquired a listing on MICEX SE.

In March 2006, the company launched an offer for the French conglomerate Arcelor. The offer did not materialize and Arcelor was instead acquired by Mittal Steel on 25 June 2006 to create Arcelor Mittal.

In April 2006, Severstal and Arcelor inaugurated the Severgal joint venture, at that time owned 75% by Severstal and 25% by Arcelor.In April 2006, Severstal acquired British wire producer Carrington Wire.In October 2006, Severstal acquired a controlling stake in Lucchini.

In November 2006, Severstal Global Depository Receipts began trading on the London Stock Exchange priced at $12.50.In May 2007, Severstal acquired Arcelor's 25% stake in Severgal.

In May 2007, Severstal acquired a further 9% of Lucchini.

In February 2007, Severstal acquired Celtic Resources, a gold mining company with assets in Russia and Kazakhstan.In September 2007, Severcorr began operations in Columbus, Mississippi.

In October 2007, Severstal acquired Aprelkovo and Nerungri Metallic, two gold mines in Eastern Russia.

In May 2008, Severstal Metiz TAS agreed to the sale of the group TAS 34.6% share of JSC Dneprometiz to Severstal Metiz.

In May 2008, Severstal acquired Sparrows Point, a steel mill in Maryland, USA, from Arcelor Mittal.In May 2008, Severstal Resources acquired a controlling stake in an iron ore deposit in Western Africa and becomes a shareholder of Mano River Resources

In June 2008, Severstal acquired Esmark Inc. based in West Virginia, USA.In July 2008, Severstal acquired WCI Steel mill in Warren, Ohio, USA.In August 2008, Severstal Metiz acquired 100% of Redaelli Tecna.

In August 2008, Severstal Resources acquired Balazhal Gold Mine in Kazakhstan.In November 2008, the company acquired PBS Coals based in Pennsylvania, USA.In November 2008, Severstal Resources acquired a controlling stake in High River Gold.In 2008, the company began a $500 million expansion to double the output of Severstal Columbus to 3.4 million tons.In January 2010, the company closed Carrington Wire.In March 2010, the company acquired all the shares of Gruppo Lucchini from the Lucchini family and became the only shareholder of the company.In June 2010, the company sold 50.8% of Lucchini S.p.A. to a company controlled by Alexey Mordashov.

In October 2010, the company acquired a 43.21% stake in Crew Gold.In October 2010, the company created Nord Gold Nv.

In October 2010, the company received a license for Centralnoe coalfield in Tyva.

In November 2010, an MOU with NSDC to build a steel mill in India was signed.

In January 2011, the company acquired the remaining shares of Crew Gold.In March 2011, the company sold its facilities in Warren, Wheeling and Sparrows Point.

Developments since 2013

On February 11, 2013, the company's Vorkutinskaya mine, in the Komi Republic in northern Russia, experienced an explosion that caused the mine to collapse on a team of 22 people. A total of 18 people lost their lives in the accident.In March 2012, the company separated from Nord Gold.In 2014, Severstal divested its steelmaking operations in the United States, selling the former Rouge Steel plant in Dearborn, Michigan to AK Steel Holding for $700 million, and its mini-mill in Columbus, Mississippi, built in 2007, to Steel Dynamics for $1.63 billion.In January 2017, the company sold Redaelli Tecna.In July 2017, the company acquired the debt of the Yakovlevsky mine.In December 2021, according to group's decarbonization strategy, Severstal agreed to sell "Vorkutaugol" to "Russkaya energia" LLC for 15 billion roubles. The approval of the deal was postponed by Federal Antimonopoly Service in February 2022.

Mission
Severstal’s mission is to become the leader in value creation In 2009, OAO Severstal developed its mission, vision and values. This important initiative, which is fully supported by the Board of Directors, lays the foundation for Severstal to become one of the world's leaders in the steel industry. We aim to create value through vertical integration and a relentless pursuit of excellence. We want to be leaders in manufacturing high demand products globally for the construction, power industry, transportation, industrial equipment and consumer goods sectors. For us, leadership in value creation means constantly striving to achieve better results and consistently exceeding customer expectations. It is about using our knowledge, experience and expertise for the development and sustainable growth of the company. We strive to meet the goals and needs of all stakeholders, including shareholders, clients, employees, business partners and the communities in which we operate.
Vision
Severstal's vision is to be a vertically integrated steel and steel-related mining company that is recognised for its industry-leading performance, prodigious output and a commitment to sustainability.
Key Team

Mr. Dmitry Fedotov (Legal Affairs Officer)

Mr. Tomas Korganas (Head of Corp. Devel.)

Ms. Maria Shalina (Director of marketing & Customer Experience Improvement)

Ms. Natalya Maleeva (Director of HR)

Ms. Natalia Poppel (Head of Corp. Social Responsibility Department)

Olga Antonova (Head of Press Service)

Mr. Alexey Egorov (Sr. VP of Communications & Gov. Relations)

Recognition and Awards
Severstal is the first ever Russian steel producer to have received the prestigious 'Steelmaker of the Year' award from the renowned World Steel Dynamics magazine. The company has also received awards from the world-renowned DNV organisation for 'World's Best Steel Supplier' and 'World's Best Steel Manufacturer' for multiple consecutive years.
References
Severstal
Leadership team

Mr. Alexander Anatolievich Shevelev (CEO of AO Severstal Management & Director)

Mr. Alexey Gennadievich Kulichenko (CFO of AO Severstal Management & Director)

Mr. Vladimir Zaluzhsky (Head of Communications & Investor Relations)

Products/ Services
Advanced Materials, Industrial
Headquarters
Columbus, Mississippi, United States
Established
2004
Net Income
1B - 20B
Revenue
Above - 1B
Traded as
CHMF.ME
Social Media