Annual report and accounts 2012
Alexander Grubman CEO of Severstal Russian Steel

”Russian steel producers enjoy a unique advantage over their global peers, in that the country is strong in iron ore, coking coal and primary energy, making vertical integration, a low cost base, and market resilience all a reality. In addition, the Russian steel market has demonstrated strong growth in recent years, which we expect to continue, driven by rising construction, infrastructure and automotive demand.
Our efforts are directed at preserving and developing these strategic advantages. We have continued to focus on cost efficiency and utilisation of equipment, further downstream expansion. And relative to our domestic competitors, we have one of the most developed sales and service centre networks across Russia and the highest share of high value-added products in our portfolio.”

Alexander Grubman
CEO of Severstal Russian Steel

Severstal Russian Steel is a leading Russian steel producer, with a broad product mix, self-sufficiency in raw materials and an extensive distribution network. We focus on high value-added flat steel products and production of long products for construction and downstream sales.

Our downstream assets include the production of large diameter pipes and metalware for machinery, as well as service centres and stamping facilities for exposed automotive parts. The division has the highest share of high value-added products among its domestic peers. Our flagship Cherepovets Steel Mill is one of the lowest-cost steel mills in the world.

Located in north-west Russia, the division’s steel operations enjoy convenient rail access from the company’s mining operations and low-cost direct river access to the Baltic ports, as well as being well positioned to serve the industrial cluster of the Saint-Petersburg and Moscow region.

Revenue in 2012 (US$ million)

EBITDA in 2012 (US$ million)