Management and organizational changes in OAO Severstal

OAO Severstal, one of the world's leading vertically integrated steel and steel-related mining companies, announces changes to its management and organizational structure in order to enhance production efficiency, improve corporate governance and reduce costs.

Vadim Larin, formerly CEO of Severstal Resources, is appointed First Deputy CEO and Chief Operating Officer.

Alexander Grubman will step down as CEO of the Severstal Russian Steel division. SergeyToropov, who previously held of the position of CEO of OJSC TKZ Krasny Kotelshchik (OJSC Power Machines) and has been working at the Cherepovets Steel Mill for several years before joining Power Machines, is appointed as CEO of Severstal Russian Steel.

The Severstal Russian Steel division and the Severstal International division as well as OAO Severstal-metiz, OAO Vorkuta Ugol, OAO Olcon, OAO Karelskiy Okatysh and PBS Coals will report directly to Mr. Larin.  OAO Severstal-metiz will be separated from the Russian Steel division.  Further changes in the corporate structure including the reduction of levels of management as well as cost-cutting programs will be carried out.

In line with the company’s focus on organic growth, the position of Vice President of Corporate Strategy will no longer exist and Thomas Verazsto, who previously held this position, has been appointed an advisor to the CEO.

Alexey Mordashov, CEO of Severstal, said: “The company continues to actively work to increase efficiency, reduce costs in order to strengthen the competitiveness of Severstal. These changes will optimize our organizational structure and enhance the efficiency of our head office. Severstal’s head office employees are welcome to be actively involved in this process and are encouraged to forward proposals on restructuring and cost reduction to the heads of their divisions.”

Sergei Toropov - Born in 1972 in Cherepovets, Vologda Region.

From 1990 to 1995 he studied at the Saint-Petersburg State Polytechnic University (qualification «metal forming»). In 2001 he graduated from the Saint-Petersburg State Polytechnic University in specialty «Management».

In 2006 he took degree of МВА at the business school of the University of Northumbria (Newcastle, Great Britain).

With PJSC Severstal he has been employed since 1995, where he has risen from the ranks of Head of Bureau of Sheet Mill Shop No.2 (LPTs-2) of the Production Directorate of Cherepovets Steel Mill to the Head of LPTs-2, which he took charge of in 2006.

In 2009 he took charge of the hot-rolled mill products production of the Production-Technical Directorate of PJSC Severstal. From 2010 to 2012 he worked as First Deputy Director of Production-Technical Directorate of JSC Severstal. Since February of 2012 he has been Chief Executive Officer of PJSC “EMAlliance” and JSC TKZ “Krasny kotelshchik”.

Married, has a daughter.

Vadim Larin –