Industrial Safety

Each of Severstal’s business divisions operate health and safety management systems which apply a systematic approach to establishing work processes that preserve and enhance their employees’ ability to work effectively and safely and are in compliance with applicable legal requirements.

Russian Steel and Metalware

In 2004, there were 101 industrial accidents at Russian Steel and Metalware, in 2005 - 113. Russian Steel and Metalware estimates that its total expenditure on industrial safety measures at Russian Steel and Metalware in 2005 amounted to approximately US$7.0 million at Cherepovets, compared to approximately US$6.0 million at the Cherepovets Steel Plant in 2004. This expenditure was made on items such as safety clothing, boots and other personal safety equipment and improving working conditions.

Severstal North America

An independent audit of Severstal North America’s health and safety management in March 2005 resulted in Severstal North America’s certification to the international occupational health and safety standard, OHSAS 18001. Severstal North America was the first integrated steel mill in the US to receive this certification. Recordable injury, lost workday case and lost time accident rates in 2005 improved over 2003 levels by 76 percent, 63 percent and 52 percent, respectively. In 2006, Severstal North America commenced an intensive safety re-education course for all employees that focuses on awareness, personal responsibility and accountability.

Lucchini

In the case of particular problems or special requirements, Lucchini’s plants can make use of external, specialist support. For example, each plant has an external specialist in charge of industrial medicine who, with the support of a paramedic, provides for the medical service of all the personnel. In addition, first aid services are available at each plant and comprise a first aid room properly equipped for medical treatments and overseen by a medical doctor and an ambulance equipped with basic medical aids. In addition, each plant has an indoor fire-prevention service.  Severstal believes Lucchini’s heath and safety systems allow Lucchini to define work processes, to preserve and improve workers’ ability to work effectively and safely and to take prompt decisions to correct unsafe working conditions.

Severstal Mining

The number of industrial accidents at Severstal Mining was 280 for the first half of 2006, 810 for 2005, 970 for 2004 and 1,259 for 2003. Severstal Mining made health and safety investments of US$8.9 million in the first half of 2006, US$13.6 million in 2005, US$10.4 million in 2004 and US$8.9 million in 2003. By 2007, Severstal Mining aims to be accredited under the international occupational health and safety standard, OHSAS 18001.