Severstal – a Global Leader in the Steel Industry

OAO Severstal

SNA is a wholly-owned subsidiary of OAO Severstal ("Severstal"), one of the top fifteen integrated steel manufacturers in the world.  Severstal is a Russian industrial holding company that includes four business divisions: Russian Steel and Metalware, Severstal North America, Inc., Lucchini S.p.A. and Severstal Mining. 

Severstal owns a 70,8% interest in Lucchini, the second largest Italian steel group with 9,000 employees and 20 industrial plants located in five European countries.  Lucchini specializes in high quality long and special carbon steel products.

Results for 2005 indicate that total production volume for all of the Severstal’s steel companies was 16.7 million tonnes.  Severstal's primary mill in Russia produced 10.8, SNA produced 2.7 and Lucchini plants produced 3.2 million tonnes.

Severstal (Cherepovets) Metallurgical Plant

Cherepovets Metallurgical Plant, Severstal's primary mill, is situated in the city of Cherepovets in northwest Russia, 295 miles (475 km) east of St. Petersburg and 385 miles (620 km) north of Moscow. Founded in 1955, it is the largest steel producer for the Russian automotive industry.

Strategically located on the Volga-Baltic waterway and the St. Petersburg-Yekaterinburg railway, the city of Cherepovets is a major transportation hub.   The city’s location, as well as its proximity to Moscow and St. Petersburg, benefits the Severstal steel mill by simplifying the logistics of raw materials and fuel delivery, providing sales opportunities to the industrial markets in the region and providing access to scrap metal markets that serve the industrial centers.

Severstal’s integrated manufacturing facilities, which include sintering machines, coke batteries, blast furnaces, steel making and rolling units, hot treatment and coating lines, produce a wide range of long and flat steel products.  These include hot-rolled and cold-rolled flat steel (including coated steel), hot-rolled sections, roll-formed shapes and pipes.

Alexey A. Mordashov

 Executive Member of the Board of Directors and Chief Executive Officer, OAO Severstal

Born in Cherepovets, Russia, Alexey Mordashov graduated from the Leningrad Institute of Engineering and Economics in 1988 and, in that same year, began his career at Severstal's Cherepovets Metallurgical Plant.  Early in his career, Mr. Mordashov held the positions of Senior Economist, Chief of Labor Economics and Deputy Chief of the Planning Department until his appointment to the position of Director of Finance and Economics, which he held from 1992 to 1996.
 
Mr. Mordashov has served as CEO of Severstal since 1996.  

Influential in the Russian business world, Mr. Mordashov has been a member of the Entrepreneurs Council of the Russian Federation Government since 2003.  In addition, he has been the head of the Entrepreneurs’ Trade Policy Committee, which is leading the negotiations for Russia’s admission to the World Trade Organization, since 2001.

Mr. Mordashov’s achievements have been acclaimed worldwide.  Mr. Mordashov was named the winner in Ernst & Young’s 2003 Entrepreneur of the Year contest in the category “Social Activities in Entrepreneurship.”  Also in 2003, Business Week described Mr. Mordashov as “an influential industrialist” who “skillfully restructured Severstal to thrive,” in an article titled “The Stars of Europe, 25 Leaders at the Forefront of Change.” 

In 2001, Mr. Mordashov received an MBA degree from the University of Northumbria, United Kingdom.  He was granted honorary doctorate degrees from the Saint-Petersburg State University of Engineering and Economics (formerly, the Leningrad Institute of Engineering and Economics) in 2001 and from the University of Northumbria in 2003.