Annual report and accounts 2012
Sergei Kuznetsov CEO of Severstal International

“Severstal is now strongly positioned in one of the world’s largest and most dynamic markets. We have invested heavily in our US operations since 2004 and now this modernisation is complete, we are making good progress towards our production targets. Fundamentally, we believe the US market is very attractive, given the low inflation environment, growing local steel demand, availability of scrap and access to relatively cheap energy.
Our strategic location assists us, with about three-quarters of US automotive stamping facilities located within 720km of our assets, as well as many of the oil and gas companies who use our steel pipe products. In fact, we now have a high-margin product mix, firmly focused on the most attractive sectors in the market.”

Sergei Kuznetsov
CEO of Severstal International

Severstal International is a modern steel producer with fully invested and cost-competitive assets in Dearborn Michigan and Columbus Mississippi, USA. Columbus is the most efficient mini-mill in North America, with a high quality of products and excellent market access. Dearborn is well positioned for the growing US automotive market, and has a favourable geographic and logistical advantage relative to peers.

With the recently completed modernisation programme, the company is increasing high value-added product sales while at the same time benefiting from low capital spending. Severstal’s North American long-term contracts in iron ore and coke, combined with our integrated coke joint venture, allow for stability of raw material supply. We have long-standing, solid relationships with leading customers in the automotive, construction, pipe and tube, and other sectors.

Revenues in 2012 (US$ million)

EBITDA in 2012 (US$ million)