OAO Severstal Russian
Russian language
Russian is a Slavic language used primarily in Russia, Belarus, Uzbekistan, Kazakhstan, Tajikistan and Kyrgyzstan. It is an unofficial but widely spoken language in Ukraine, Moldova, Latvia, Turkmenistan and Estonia and, to a lesser extent, the other countries that were once constituent republics...

: Северсталь, "Northern Steel") is a Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...

n company mainly operating in the steel
Steel is an alloy that consists mostly of iron and has a carbon content between 0.2% and 2.1% by weight, depending on the grade. Carbon is the most common alloying material for iron, but various other alloying elements are used, such as manganese, chromium, vanadium, and tungsten...

 and mining
Mining is the extraction of valuable minerals or other geological materials from the earth, from an ore body, vein or seam. The term also includes the removal of soil. Materials recovered by mining include base metals, precious metals, iron, uranium, coal, diamonds, limestone, oil shale, rock...

 industry, centred in the northern city of Cherepovets
Cherepovets is the largest city in Vologda Oblast, Russia, located on the bank of the Rybinsk Reservoir of the Sheksna River, a tributary of the Volga River. Population: 311,869 ; It is served by Cherepovets Airport.-Location:...

. Severstal is listed on the RTS
Russian Trading System
The Russian Trading System is a stock market established in 1995 in Moscow, consolidating various regional trading floors into one exchange. Originally RTS was modelled on NASDAQ's trading and settlement software; in 1998 the exchange went on line with its own in-house system...

 and LSE
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...

. 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
Severstal Cherepovets
HC Severstal Cherepovets is a professional ice hockey team based in Cherepovets, Vologda Oblast, Russia. They are members of the Tarasov Division in the Kontinental Hockey League.-History:Founded in 1956, the club was originally known as Stroitel Cherepovets...

, a Russia Super League ice hockey
Ice hockey
Ice hockey, often referred to as hockey, is a team sport played on ice, in which skaters use wooden or composite sticks to shoot a hard rubber puck into their opponent's net. The game is played between two teams of six players each. Five members of each team skate up and down the ice trying to take...



During the early 1930s, deposits of iron ore were discovered on the Kola Peninsula
Kola Peninsula
The Kola Peninsula is a peninsula in the far northwest of Russia. Constituting the bulk of the territory of Murmansk Oblast, it lies almost completely to the north of the Arctic Circle and is washed by the Barents Sea in the north and the White Sea in the east and southeast...

 and, at about the same time large quantities of coal
Coal is a combustible black or brownish-black sedimentary rock usually occurring in rock strata in layers or veins called coal beds or coal seams. The harder forms, such as anthracite coal, can be regarded as metamorphic rock because of later exposure to elevated temperature and pressure...

 were discovered in the area of Pechora
Pechora is a town in the Komi Republic, Russia, situated on the Pechora River, near the northern Ural Mountains. Population: It is served by Pechora Airport and is affiliated with the nearby Pechora Kamenka military air base....

. These two factors made it possible to establish a viable steel industry in the northwest of Russia. In 1940 the Soviet government
Government of the Soviet Union
The Council of Ministers of the Union of Soviet Socialist Republics , was the de jure government comprising the highest executive and administrative body of the Soviet Union from 1946 until 1991....

 published a resolution "On The Organization of Steel Making in the North-West of the USSR", which created a steel mill
Steel mill
A steel mill or steelworks is an industrial plant for the manufacture of steel.Steel is an alloy of iron and carbon. It is produced in a two-stage process. First, iron ore is reduced or smelted with coke and limestone in a blast furnace, producing molten iron which is either cast into pig iron or...

 in Cherepovets
Cherepovets is the largest city in Vologda Oblast, Russia, located on the bank of the Rybinsk Reservoir of the Sheksna River, a tributary of the Volga River. Population: 311,869 ; It is served by Cherepovets Airport.-Location:...

, a city accessible by both the St Petersburg-Ekaterinburg railway and by the Volga-Baltic waterway
Volga River
The Volga is the largest river in Europe in terms of length, discharge, and watershed. It flows through central Russia, and is widely viewed as the national river of Russia. Out of the twenty largest cities of Russia, eleven, including the capital Moscow, are situated in the Volga's drainage...


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
Boris Yeltsin
Boris Nikolayevich Yeltsin was the first President of the Russian Federation, serving from 1991 to 1999.Originally a supporter of Mikhail Gorbachev, Yeltsin emerged under the perestroika reforms as one of Gorbachev's most powerful political opponents. On 29 May 1990 he was elected the chairman of...

, 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
Arcelor S.A. was the world's largest steel producer in terms of turnover and the second largest in terms of steel output, with a turnover of €30.2 billion and shipments of 45 million metric tons of steel in 2004...

 did not materialize and Arcelor instead merged with Mittal Steel on 25 June 2006 to create Arcelor Mittal.

Severstal Company


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.


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
Rouge Steel
This steelmaking plant was originally part of the Ford Motor Company, which created an integrated manufacturing complex to produce all major vehicle components at one large facility called The Rouge...

 (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.

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 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
    Sergei Kuznetsov
    Serhiy Vasylyovych Kuznetsov is a retired Ukrainian and Soviet football player. He is the brother of Viktor Kuznetsov.-Honours:* Soviet Top League winner: 1972, 1975, 1977.* UEFA Cup Winners' Cup winner: 1975.-International career:...

      (CEO of Severtsal International, CEO of Severstal North America
    Severstal North America
    Severstal North America is a subsidiary of the Russian Severstal Group which operates an integrated steel mill Severstal Dearborn located at the Rouge Complex in Dearborn, Michigan. The Severstal Dearborn facility was formerly known as Rouge Steel....

  • Vladimir Kozlov (Deputy CEO)
  • Nicolas Vallorz (Deputy CEO)
  • Alexey Yegorov (Deputy CEO)
  • Vadim Saveliev (Deputy CEO)
  • Thomas Veraszto (Deputy CEO)
  • Andrey Mitiykov (Deputy CEO)


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
        Rouge Steel
        This steelmaking plant was originally part of the Ford Motor Company, which created an integrated manufacturing complex to produce all major vehicle components at one large facility called The Rouge...

      • Severstal Columbus
        Severstal Columbus, LLC, formerly known as SeverCorr Corporation , was founded in April 2005 by a group of steel executives including former Nucor Corporation CEO John Correnti. It specializes in "mini-mill" plants, designed to recycle steel into new products suitable for the automobile industry...

    • Lucchini Group
      • Piombino
      • Ascometal
  • Severstal Resources
    • Vorkutaugol
    • Karelsky Okatysh
    • Olenegorskiy mining and processing plant
    • NordGold NV
    • PBS Coals
  • Severstal Aviacompany

External links

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