Annual Report & Accounts 2013
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Severstal at a glance

OAO Severstal (“Severstal”, “the Company”, or “the Group”) is a vertically integrated steel and steel-related mining company with major assets in Russia and the USA, as well as investments in other locations. Operations began in 1955 at Cherepovets Steel Mill in Russia. Since becoming a private company in 1993, Severstal has been growing and expanding internationally. The company is listed on the Moscow Exchange (MICEX) and its GDRs are traded on the London Stock Exchange (LSE). Severstal’s strategic aim is building a healthy and high-quality business that would generate higher than market average earnings through the cycle. Severstal comprises three business divisions: Severstal Resources, Severstal Russian Steel and Severstal International.

Severstal Resources

Severstal Resources manages all of Severstal’s mining assets, and forms the basis of Severstal’s vertically integrated business model. It satisfies almost all the iron ore and hard coking coal requirements of Severstal Russian Steel and, some of the requirements of Severstal’s International steel operations, while also selling increasing volumes to external customers. The coal businesses are among Russia’s top five coking coal producers, while the iron ore businesses are leaders by extraction volume in their respective markets.

Severstal Russian Steel

Severstal Russian Steel is a leading Russian steel producer, offering a broad product mix, with a high proportion of high value-added flat steel products, and increased production of long products for construction and downstream sales. Its flagship Cherepovets steel mill is one of the lowest-cost steel mills in the world, and is conveniently located for access from the company’s mining operations, and to the Baltic ports and Russia’s industrial heartland.

Severstal International

Severstal International is a modern steel producer with two of the most advanced facilities in North America, in Dearborn and Columbus. Modern facilities allow capital expenditure and maintenance levels to remain low, and production can focus on high value-added products. The division has long-standing, solid relationships with leading customers in the automotive, construction, pipe and tube, and other sectors, and is well-positioned in these markets.

Iron ore sales volumes at Severstal Resources (mln tonnes)

Coal sales volumes at Severstal Resources (mln tonnes)


Highly diversified sales geography (Severstal Group FY 2013 revenue breakdown by region)

The highest share of high value-added steel in Russia (in total steel shipments of Severstal Russian Steel in 2013)


Highly diversified client base (Severstal Russian Steel’s revenue by industry in 2013)

The fastest growing segments of the HVA portfolio (in tonnes in total steel shipments of Severstal Russian Steel in 2013)

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