Company history

Construction of Cherepovets Steel Mill

The construction of a large plant to supply the North-Western region of Russia with metal became possible after the discovery of the Kola iron cores and Pechora coal deposits in 1930-1933.

Due to the extreme climate and remoteness of the location, the construction of the integrated iron and steel works in the immediate vicinity of ore and coal fields was deemed inexpedient. It was decided to place the business near Cherepovets, which is both at the crossroads of ore, coal and finished product flows and at the intersection of the Vologda-Leningrad Railroad and Maria Water System.

On June 20, 1940, the USSR Council of People’s Commissars approved the Decree On Organization of Metallurgical Base in the North-West of the USSR, overlooking the construction of a metallurgical plant in Cherepovets.

The construction of the works was postponed due to the beginning of the Great Patriotic War (World War 2).

From Breaking the Ground to Steel Production

Construction of the works was postponed for 7 years. The fabrication shop was launched in 1951, after four years of construction works.

The plant’s co-gen produced its first electricity in May 1954.

August 24, 1955 is considered the birthday of Cherepovets Steel Mill. On that day, the first steel was produced at the works.

The coking plant was put into operation in February 1956.

The first steel ingot was made in 1958.

The blooming mill was commissioned in January 1959.

Europe’s largest sheet rolling mill began to work in November 1959.

The Cherepovets plant became a full-cycle integrated iron and steel works. New metallurgical facilities were put into operation in the following years: blast furnaces, electrical furnaces, converters, rolling mills for the production of sheet and section steel.

Reorganization and Privatization

Taking into consideration the complex structure and integrated nature of production, on June 23, 1983, the Ministry of Ferrous Metallurgy of the USSR resolved to reorganize Cherepovets Metallurgical Plant into Cherepovets Steel Mill.

On September 24, 1993, pursuant to a Decree of the President of the Russian Federation, State Enterprise Cherepovets Steel Mill was registered by the Mayor’s Office of the City of Cherepovets as Joint Stock Company “Severstal”.

Severstal has been actively growing since 1993, incorporating businesses manufacturing fabricated metal products and pipes and producing iron ore and other minerals, as well as steel making plants in North America and Europe.

Severstal Today

PAO Severstal is one of the world’s leading vertically integrated steel and  steel related mining companies, with assets in Russia in Ukraine, Latvia, Poland, Italy, Liberia and Brazil. Severstal’s gold business, Nordgold was established in 2007 and comprised mines and exploration projects in Russia, Kazakhstan, Burkina Faso and Guinea. In 2011, Gold segment – Nordgold – was separated reflecting a change in the development strategy. Nordgold separation was proceeded in January 2012 with a share exchange offer of Nordgold shares to Severstal and Nordgold listing on the London Stock Exchange.

Severstal is listed on RTS and MICEX and the company’s GDRs are traded on the LSE (November 2012 witnessed the sixth anniversary of Severstal’s listing on the London Stock Exchange). Severstal reported revenue of $13,312 million and EBITDA of $2,063 million in 2013. Severstal’s crude steel production in 2013 reached 15.69 million tonnes.

The company focuses on high added value products and unique niche products.

In 2008 the company’s management structure was modified by creating three divisions: Severstal Russian Steel, Severstal Resources and Severstal International.

Severstal’s key asset is Cherepovets Steel Mill, an integrated steel plant with coking coal, agglomeration, blast furnaces, steel-smelting and rolling facilities. It is one of the world’s most powerful and modern ferrous metals manufacturing enterprises.

Severstal’s corporate governance is in line with international best  practices. The company’s Board of Directors has 10 members, 5 of whom (including the chairman) are independent directors.

In 2011 the company developed a corporate social responsibility policy which defines public commitments to safety, health, and environmental and social responsibility. Corporate social responsibility policy and relevant standards have been adopted across all operations in 2012.

History of the Company’s Divisions

Severstal Russian Steel

Severstal Russian Steel is one of the leading steelmakers in Russia. It consists of six segments: steel (Cherepovets Steel Mill, Kolpino processing service center), metalware (Severstal-Metiz), pipes (Izhora Pipe Mill, TPZ Sheksna), trading (Severstal-Invest), services (Promservice, SSM-Tyazhmash) and scrap procurement (Vtorchermet).

The growth of Severstal Russian Steel in 2008 improved the company’s leading position in the Russian market. Severstal Russian Steel specializes in high value added products, such as cold-rolled and galvanized sheet (including automotive grade steel), thick-gauge plates and pipes.

Severstal Resources

Severstal Resources is Russia’s leading producer of iron ore and coal. Severstal’s mining division was formed by acquisitions made over the last 12 years. It comprises two iron ore integrated works (Karelian Pellet and Olkon), coal companies located in the North-West of Russia (Vorkutaugol) and an iron ore exploration project in Liberia (Severstal Liberia Iron Ore), and a research institute (SPb-Giproshakht).

Severstal holds 49.2 percent of Lucchini SpA shares since June 30, 2010.