News
23.04.2008
SeverStal Completes Management Share Buyout at SeverCorr
Executive management transition and production ramp-up progressing well
Columbus, Mississippi: Severstal, one of the world’s leading metals and mining companies, today announced that it has completed the purchase of the outstanding ownership shares belonging to the founding management team of SeverCorr, the next generation steel mill located in Columbus, Miss. Following the transaction, Severstal will hold approximately 85% of SeverCorr.
As part of the purchase, John Correnti, Michael Wagner, Richard Painter, Edward Lehner and Wynn Calland will be leaving Severcorr. On January 2, 2008, Severstal appointed James Hrusovsky, CEO, who has been working closely with the founding management team on a seamless transition.
Severstal will also be making additional internal appointments to finalise the SeverCorr executive management team and further ensure business continuity. As part of this process, the company today announced the appointment of Mark Miller, Vice President and Director of Projects and Tom Marchak, Vice President Sales and Marketing.
SeverCorr’s operational management team remains in place and departure of the founding management team will not impact operations. Severcorr continues its successful production ramp-up, having produced approximately 350,000 tons of hot band in 1Q08. The Phase II expansion is on-track to be completed by late 2010 and is expected to more than double the mill’s output to 3.0 million metric tons.
Commenting on the announcement, Hrusovsky said, “Severstal has been a major supporter of SeverCorr within the past two years, giving strength to our development and further growth. Since taking over as CEO, I have met with many of the employees. I am impressed with the breadth and depth of talent here and the superior technology of the facility. I’m also encouraged by the continued support that we’ve received from our customers and local and state officials.”
Hrusovsky continued, “John Correnti and the founding management team have been tremendously helpful with the transition and we remain committed to their vision of creating one of the most technologically advanced mills in the steel industry to serve both the customers and community of the fast growing Southern region of the U.S.”
Note to Editors:
Mark D. Miller
Vice President and Director of Projects
Mr. Miller has been General Manager, Engineering and Project Management for Severstal Technology, LLC since 2005. Mr. Miller came to Severstal after working 10 years with Bricmont, Inc. as Project Manager over all projects within their engineering service group. He was Project Director at D&L, Inc. from 1988 to 1995. From 1981 to 1988 Mr. Miller worked as an engineer at Cooper Power Systems. He began his career in 1979 as an application engineer at Delco Electronics. Mr. Miller joins the SeverCorr team with a vast amount of project experience including design, engineering, construction, procurement, project scheduling, budgeting, and overall project management. Mr. Miller holds a Bachelor of Science Degree, Electrical Engineering from the University of Pittsburgh and is a Registered Professional Engineer.
Tom Marchak
Vice President Sales & Marketing
Tom Marchak entered his first steel mill in April 1984 as a Sales Trainee for Bethlehem Steel. Mr. Marchak worked for Bethlehem Steel for a total of 16 years. He also assisted in the building and start up of Chicago Cold Rolled as VP of Commercial from 1996-1999. In 2003, he joined Kenwal Steel as the VP of Commercial in Burns Harbor, Indiana. Mr. Marchak joined the SeverCorr team in June of 2006 as General Manager of Sales. A Pennsylvania native and graduate of the University of Scranton in Pennsylvania, Mr. Marchak also graduated from executive courses at the Fuqua School of Business at Duke University and the Wharton School at the University of Pennsylvania.
About SeverCorr
SeverCorr is a unique mill in that it produces high-quality steel by combining an electric arc furnace steel making process using scrap metal with integrated finishing plant. It is located near a number of large steel customers, making the distribution channels more efficient. SeverCorr complements Severstal’s other U.S. business, SNA, which is based in Dearborn, Michigan and primarily serves the manufacturing hub of the Midwest U.S.
The U.S. operations currently contribute 16% to Severstal’s total revenues. Full consolidation of SeverCorr financials began in 1Q 2008.
About SeverStal:
OAO Severstal is one of the world’s leading metals and mining companies with a listing on the London Stock Exchange, the Russian Trading System and MICEX. Incorporated in 1993, the company focuses on high value added and unique niche products and has a successful track record of acquiring and integrating high-quality assets in North America and Europe. Severstal owns mining assets in Russia, thus securing its supplies of raw materials. In 2007, Severstal produced 17.5 million tons of steel. Revenues were $15.2 billion and EBITDA was $3.7 billion. EPS was $1.92.
For further information:
Taylor Rafferty
Office: +1 212 889 4350
Michael Henson
Mobile: +1 917 902 0767
John Dudzinsky
Mobile: + 1 646 715 2980
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