About Public Joint Stock Company Severstal
Public Joint Stock Company Severstal operates as a vertically integrated steel and steel-related mining company with its major assets located in Russia and some investments in other countries. The company is predominantly focused on supplying steel products to the domestic market, though it is also a significant exporter. The company has a diversified product portfolio with an emphasis on high value-added steel products. The company focuses on consistently delivering new products that will meet the requirements of the next generation of infrastructure projects. The company focuses on opportunities in new growth niches, such as wind tower production and cryogenic steel components for LNG tanks. Segments The company operates through two segments, Severstal Resources and Severstal Russian Steel. Severstal Resources This segment includes three iron ore complexes, JSC Karelsky Okatysh, JSC_Olcon in northwest Russia, OOO Korpanga (Yakovlevskiy mine) in southwest Russia and a coal mining complex, JSC Vorkutaugol in northwest Russia. The company’s mining assets are a fundamental part of the company’s vertically integrated business model. Severstal Resources supplies almost all of the iron ore and approximately 80% of the hard coking coal consumed by the company’s steel business, while also selling significant volumes to external customers both in Russia and abroad. Karelsky Okatysh Located in Karelia, north-western Russia, Karelsky Okatysh is one of the country’s leading and most modern iron ore mining complexes. It produces high-quality iron ore pellets with an iron concentration of up to 67%. Its three major deposits, Kostomuksha, Korpanga and South Korpanga, have an estimated supply of some one billion tonnes. Olcon Located in the Murmansk region, Olcon is Russia’s most northerly iron ore complex. Olcon mines magnetitehematite quartzite ores from six open pits and Olenegorsk underground mine, and produces highquality iron ore concentrate (c. 69%) and crushed stones. Vorkutaugol Located in the Komi Republic (near Vorkuta), north-east European Russia, Vorkutaugol mines coking and steam coal and is one of the largest producers of hard coking coal in Russia. Coking coal produces coke, which is used for steel production. The three deposits operated, the Vorkutinskoye, Vorgashorskoye and Yunyaginskoye coal deposits, have an estimated life of 17, 9 and 13 years, respectively. The business consists of four underground mines, one open-pit mine and two washing plants, a mechanical plant, maintenance and transport facilities. Yakovlevskiy Mine The Yakovlevskiy deposit, with a total resource base of over nine billion tonnes, is located 40km north of Belgorod. The resources are unique in iron content, the concentration of which reaches a minimum of 60%. Severstal Russian Steel This segment consists primarily of the company’s steel production and high-grade automotive galvanizing facilities in Cherepovets; rolling mill 5000 and large-diameter pipe mill in Kolpino, all in northwest Russia; a metalware plant located in Russia; a ferrous scrap metal recycling business operating in northwest and central Russia, as well as various supporting functions for trading, maintenance and transportation, located in Europe. The company’s core asset is the Cherepovets Steel mill, one of the steel mills in the world, strategically located near to its mining operations, the Baltic ports and Russia’s industrial heartland. Severstal Russian Steel is a leading Russian steel producer. The segment has a broad product portfolio, includes a majority of high valueadded flat steel products and increasing volumes of long products for construction and downstream sales. Severstal Russian Steel is a leading Russian steel producer, with a broad product mix, and an extensive distribution network. The segment focuses on high valueadded flat steel products and the production of long products for construction and downstream sales. The company’s downstream assets include producers of large diameter pipes and metalware, as well as service centres and stamping facilities for exposed automotive parts. Cherepovets Steel Mill One of the world’s largest stand-alone integrated steel works by capacity, as well as an excellently located, steel producer. It produces a wide range of flat and long-rolled products, including hot and cold-rolled flat products, galvanised and colour-coated products and long-steel applications. Rolling Mill 5000, located in Kolpino, near St. Petersburg, produces strips for large diameter pipes, as well as thick plates for ship and bridge building, nuclear and other industries. Izhora Pipe Mill The mill in Kolpino specialises in manufacturing large diameter pipes from plate, which are produced at the nearby Kolpino Mill 5000. It has a production capacity of 600,000 tonnes of pipes per year, most of which are used in oil and gas pipeline projects. Severstal-Metiz Severstal-Metiz includes several subsidiaries, such as the Cherepovets site in north-west Russia, the Orel site in central Russia, the Volgograd site in the Povolzhye region and the Dzerzhinsk site in Nizhny Novgorod Region. Severstal Distribution consists of sales representations and more than 30 warehouses of various scale, located in European Russia and 12 countries in the European Union. Severstal Distribution offers steel processing and distribution services, including multimodal schemes by water/rail/road and containers, and also maintenance and financial solutions. Remote export sales are performed through the subsidiary Severstal Export GmbH. Severstal-Gonvarri-Kaluga service centre is a RussianSpanish joint venture of two global steel manufacturing and processing leaders. Providing a link between a rolled-metal manufacturer and the final user, the enterprise provides a whole range of services related to longitudinal and transverse cutting of rolled metal, and blanking for further processing. It has a design capacity of 170,000 tonnes of rolled metal products per year, produced for the automotive, electrical and machinery industries. Gestamp-Severstal-Kaluga Stamping Facility is a joint venture between the company and international group Gestamp. It is equipped with a number of press lines and produces the full range of rolled steel products, from coils to car components for international car manufacturers. It has an annual output of 13 million stamped parts and has potential to expand production. Severstal-SMC-Vsevolozhsk service centre is a joint venture with Japanese company Mitsui. It provides a wide range of services, from longitudinal and transverse cutting of rolled metal, blanking for further stamping to forming unique client-oriented storage, packaging, logistics and financial programmes. The enterprise has the first production line in Russia and CIS countries for welding blanks for the automotive industry. The service centre’s capacity is 150,000 tonnes. Gestamp-Severstal-Vsevolozhsk is a joint venture of the company and Gestamp group. It is equipped with press line and welding assembly equipment and produces car components for international car manufacturers. The company’s product portfolio is constantly expanding, and its focus is on the development of high-tech products with high value-added, with clients’ requests actively taken into consideration. The company’s key domestic customers include construction companies and pipe mills, machinery and automotive clients. The company has the broadest product mix among Russian metallurgical enterprises. The company’s product portfolio is constantly expanding, and its focus is on the development of high-tech products with high value-added, with clients’ requests actively taken into consideration. The company’s key domestic customers include construction companies and pipe mills, machinery and automotive clients. Acquisitions In March 2020, the company acquired a 100% stake in the Sintez group of companies from a third party. Sintez is located in Dzerzhinsk and produces a wide range of unique carbonyl iron powders. In July 2020, the company acquired a 24% stake in Linde Severstal LLC. History The company was founded in 1955. It was formerly known as Open Joint-Stock Company Severstal and changed its name to Public Joint Stock Company Severstal in 2014.
