Severstal (Russian: Северсталь, lit. 'Northern Steel') is a Russian company mainly operating in the steel and mining industry, headquartered in Cherepovets. Severstal is listed on the Moscow Exchange and LSE and is the largest steel company in Russia. The company is majority-owned and controlled by billionaire Alexey Mordashov.
|Traded as||MCX: CHMF,|
|Alexey Mordashov (Chairman)|
Alexander Shevelev (CEO)
|Products||Steel, metalware, large diameter pipe|
|Revenue||₽458 billion (2017)|
|$1.52 billion (2016)|
|₽1.62 billion (2016)|
|Total assets||$2.81 billion (2016)|
|Total equity||$3.04 billion (2016)|
Number of employees
|Subsidiaries||Severstal Air Company|
Severstal owns major industrial facilities in Russia, Ukraine, Kazakhstan, France, and Italy, as well as in several African countries. The company also has mining assets, thus securing its supply of raw materials.
Severstal also owns Severstal Cherepovets, a professional ice hockey club which plays in the Kontinental Hockey League and Severstal Air Company, an airline operating mainly from Vnukovo International Airport and Cherepovets Airport.
Severstal has been ranked as among the 16th best of 92 oil, gas, and mining companies on indigenous rights and resource extraction in the Arctic.
During the early 1930s, deposits of iron ore were discovered on the Kola Peninsula and, at about the same time large quantities of coal were discovered in the area of Pechora. These two factors made it possible to establish a viable steel industry in the northwest of Russia.
In 1940, the Government of the Soviet Union published a resolution "On The Organisation of Steel Making in the North-West of the USSR", which created a steel mill in Cherepovets, a city accessible by both the Leningrad-Ekaterinburg railway and by the Volga–Baltic Waterway.
In 1947, the construction of Cherepovets Steel Mill was completed.
Facility construction accelerated after the end of World War II, and at 3:25 PM on 24 August 1955, the Cherepovets steel mill was put into operation. Development continued in the following decades, making Cherepovets a major centre of steel production in the Soviet Union.
In 2004, Severstal North America was created when Severstal acquired all the steelmaking assets of Rouge Steel, based in Michigan, USA.
In April 2005, Severstal acquired a 19.9% stake in European steel producer Gruppo Lucchini.
In June 2005, Severstal acquired a listing on MICEX SE.
In March 2006, the company launched an offer for the French conglomerate Arcelor. The offer did not materialize and Arcelor was instead acquired by Mittal Steel on 25 June 2006 to create Arcelor Mittal.
In April 2006, Severstal and Arcelor inaugurated the Severgal joint venture, at that time owned 75% by Severstal and 25% by Arcelor.
In April 2006, Severstal acquired British wire producer Carrington Wire.
In October 2006, Severstal acquired a controlling stake in Lucchini.
In November 2006, Severstal Global Depository Receipts began trading on the London Stock Exchange priced at $12.50.
In May 2007, Severstal acquired Arcelor’s 25% stake in Severgal.
In May 2007, Severstal acquired a further 9% of Lucchini.
In February 2007, Severstal acquired Celtic Resources, a gold mining company with assets in Russia and Kazakhstan.
In September 2007, Severcorr began operations in Columbus, Mississippi.
In October 2007, Severstal acquired Aprelkovo and Nerungri Metallic, two gold mines in Eastern Russia.
In May 2008, Severstal Metiz TAS agreed to the sale of the group TAS 34.6% share of JSC Dneprometiz to Severstal Metiz.
In May 2008, Severstal Resources acquired a controlling stake in an iron ore deposit in Western Africa and becomes a shareholder of Mano River Resources
In June 2008, Severstal acquired Esmark Inc. based in West Virginia, USA.
In August 2008, Severstal Metiz acquired 100% of Redaelli Tecna.
In August 2008, Severstal Resources acquired Balazhal Gold Mine in Kazakhstan.
In November 2008, the company acquired PBS Coals based in Pennsylvania, USA.
In November 2008, Severstal Resources acquired a controlling stake in High River Gold.
In 2008, the company began a $500 million expansion to double the output of Severstal Columbus to 3.4 million tons.
In January 2010, the company closed Carrington Wire.
In June 2010, the company sold 50.8% of Lucchini S.p.A. to a company controlled by Alexey Mordashov.
In October 2010, the company acquired a 43.21% stake in Crew Gold.
In October 2010, the company created Nord Gold Nv.
In October 2010, the company received a license for Centralnoe coalfield in Tyva.
In November 2010, an MOU with NSDC to build a steel mill in India was signed.
In January 2011, the company acquired the remaining shares of Crew Gold.
On February 11, 2013, the company's Vorkutinskaya mine, in the Komi Republic in northern Russia, experienced an explosion that caused the mine to collapse on a team of 22 people. A total of 18 people lost their lives in the accident.
In March 2012, the company separated from Nord Gold.
In 2014, Severstal divested its steelmaking operations in the United States, selling the former Rouge Steel plant in Dearborn, Michigan to AK Steel Holding for $700 million, and its mini-mill in Columbus, Mississippi, built in 2007, to Steel Dynamics for $1.63 billion.
In January 2017, the company sold Redaelli Tecna.
In July 2017, the company acquired the debt of the Yakovlevsky mine.
Sustainable development is one of the strategic priorities for Severstal. Starting 2010, the company has annually released a Corporate Social Responsibility and Sustainable Development report.
In June 2019, in connection with the Presidential Decree dated 7 May 2018 No. 204 “On the National Goals and Strategic Objectives of the Development of the Russian Federation for the Period up to 2024” and the Federal Project “Clean Air”, Severstal entered into the agreement on co-operation for reducing air emissions in Cherepovets with the Ministry of Natural Resources and Ecology, Rosprirodnadzor and the local authorities. In accordance with this agreement the Company assumed obligations to ensure the implementation of measures that will reduce pollutant emissions by 30 thousand tons into the atmosphere by 2024.
- "Рейтинг крупнейших компаний России по объему реализации продукции". Expert RA. Archived from the original on 28 October 2018. Retrieved 28 October 2018.
- http://www.severstal.com/files/1845/document19938.pdf; retrieved: 29 March 2017.
- Overland, Indra (2016). "Ranking Oil, Gas and Mining Companies on Indigenous Rights in the Arctic". ResearchGate. Arran. Retrieved 2 August 2018.
- "History of Severstal". Steelonthenet.com. Retrieved 2012-10-27.
- KRAMER, ANDREW E. (May 27, 2006). "A Steel Magnate With Kremlin Connections". The New York Times.
- "Arcelor and Severstal Inaugurate Severgal, Their Joint Galvanising Line for the Russian Automotive Market" (Press release). Business Wire. April 13, 2006.
- Hotten, Russell (November 9, 2006). "Severstal prices shares at top end". The Daily Telegraph.
- "Severstal to buy U.S. steel plant from ArcelorMittal". The New York Times. March 24, 2008.
- "Severstal sweetens offer, agrees to acquire Esmark". Reuters. June 26, 2008.
- Mezger, Roger (May 16, 2008). "Russia's Severstal buying WCI Steel in Warren". Cleveland Plain Dealer.
- "Russia's Severstal buys gold mine in Kazakhstan". Reuters. August 11, 2008.
- "Severstal Resources reaches agreement to acquire PBS Coals and expands gold business". International Mining. August 25, 2008.
- "Severstal Resources acquires a controlling stake in High River Gold" (Press release). CNW Group. November 20, 2008.
- Mamrack, Kristin (13 January 2010). "Severstal to beef up production in 2010". The Columbus Dispatch.
- "Russia's Severstal to close UK's Carrington Wire". Reuters. January 18, 2010.
- "Russia Severstal buys remaining 20.2 pct of Lucchini". Reuters. March 4, 2010.
- "Severstal Completes Acquisition of Stake in Crew Gold Corporation" (Press release). Yahoo!. September 27, 2010.
- "Severstal Acquires 100% of Crew Gold Corporation" (Press release). Globe Newswire. January 10, 2011.
- "Renco buys 3 Severstal U.S. mills in $1.2 bln deal". Reuters. March 2, 2011.
- "Severstal to sell Sparrows Point steel mill to Renco Group". American City Business Journals. March 2, 2011.
- Walker, Andrea K. (March 2, 2011). "Sparrows Point plant to be sold to new subsidiary of Renco Group". Baltimore Sun.
- "Russia Coal Mine Blast: 18 People Dead In Vorkutinskaya Explosion". Huffington Post. 11 February 2013.
- "Nord Gold Completes Separation from Severstal and Retains Its Stake in High River Gold Mines" (Press release). Glacier Media. March 14, 2012.
- "Russia’s Severstal Sells U.S. Plants for $2.3 Billion", Bloomberg Business, July 21, 2014.
- "Agreement for sale of Redaelli Tecna". Financial Times. January 23, 2017.
- "Severstal acquires the debt of Yakovlevsky mine". Financial Times. July 20, 2017.
- "Severstal Annual Report" (PDF).
- "Severstal website CSR Reports".
- "UN Global Compact participants".
- "Step up programme". worldsteel association. Retrieved 20 September 2019.
- "«Северсталь», Минприроды РФ, Росприроднадзор и Вологодская область подписали Соглашение о взаимодействии в рамках федерального проекта «Чистый воздух»". Severstal. 7 June 2019. Retrieved 20 September 2019.