Quality & Innovations

Research and Development

Severstal’s research and development programme is focused on the development of new and existing technologies, and on scientific, analytical and experimental work to enhance the quality of existing products and devise new types of products. Severstal outsources its research and development work to laboratories and research centres in Moscow and St. Petersburg which specialise in ferrous metals.

Severstal’s research and development programme is financed according to an annual budget, which includes a detailed plan for research studies to be undertaken and for external scientific institutions to be financed.

Severstal estimates that in 2003, it spent U.S.$2.2 million on research and development compared to U.S.$2.1 million in 2002 and U.S.$1.0 million in 2001. In 2002, Severstal started production of 81 new steel products, including new grades of steel for the automotive industry and high quality steel for pipes and designed systems for a continuous billet caster and electric arc welding for steel rolls. 27 new products created within the R&D program were launched in 2005. It is planned that the investment in R&D will double between 2005-2007.

Intellectual Property

As at 31 December 2003, Severstal had approximately 468 patents, 12 certificates and a Gold Medal from the International Innovation Salon in Geneva. As at such date Severstal also had a registered trademark and logo and an Internet domain. Severstal’s technical department is responsible for policy with respect to intellectual property.