Severstal Annual Report 2015 Home > Business Overview > Integrated Business Model

Integrated Business Model

Severstal’s business model assumes low indebtedness and absolute cost advantage compared with both local and global competitors via proper vertical integration. Hence, prudent integration into raw materials coupled with highly efficient steel operations will further support the Company’s profitability, free cash flow generation abilities and a strong balance sheet.

Following the divestment of the Group’s US-based operations the Company now operates a highly efficient asset structure. Severstal remains a global player with significant export opportunities given the quality and efficiency of our Russian operations as well as the favourable location of our producing assets.

Positive impact of vertical integration on production cash cost of slab at Cherepovets Steel Mill, US$/t

Severstal Resources Division

Severstal Resources comprises Severstal’s mining assets, forming the basis of Severstal’s vertically integrated business model.

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Severstal Russian Steel Division

Severstal Russian Steel is a leading Russian steel producer, with a broad product mix, self-sufficiency in raw materials and an extensive distribution network.

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