Severstal PJSC is a Russian vertically integrated steel and mining company that owns the Cherepovets Steel Mill ( Vologda Region ), the second largest steel mill in Russia . Owns assets in Russia, as well as in Ukraine, Latvia, Poland, Italy, Liberia [3] . Full name - public joint stock company "Severstal" . The company consists of the Severstal Russian Steel [4] and Severstal Resources [5] divisions. The company is controlled by Alexey Mordashov [6] .
| PAO "Severstal" | |
|---|---|
 | |
| Type of | Public company |
| Listing on the exchange | , |
| Base | 1955 |
| Location |  Russia : Cherepovets , Vologda Region |
| Key figures | Alexey Mordashov ( Chairman of the Board of Directors ) Alexander Shevelev ( General Director of Severstal). |
| Industry | Ferrous metallurgy , mining industry |
| Equity |
|
| Turnover | ▲ $ 7.726 billion (2017, IFRS ) [1] |
| Operating profit | ▲ $ 2.162 billion (2017, IFRS ) [1] |
| Net profit | ▼ $ 1.355 billion (2017, IFRS ) [1] |
| Assets |
|
| Capitalization | ▲ 789 billion rubles (2017) |
| Number of employees | 50 thousand people |
| Affiliated companies | |
| Auditor | KPMG Limited (2016) |
| Site | www.severstal.com |
History
Construction of the plant started in 1941. The company has been counting its history since 1955 . In February 1959, the first rolled steel was produced in Cherepovets , which marked the end of the construction of an integrated metallurgical production [7] .
In 1993, the company was incorporated and later privatized. Since November 2006, GDRs on Severstal shares have been traded on the London Stock Exchange [7] .
Mergers and Acquisitions
In the early 2000s, the company acquired two passenger car factories in Russia: the Ulyanovsk and the Small car factory ( Naberezhnye Chelny ), which were allocated to Severstal-auto . In 2007, Severstal-auto CEO Vadim Shvetsov bought out a controlling stake from Alexey Mordashov. In 2008, Severstal-auto changed its name to Sollers .
In 2004, Severstal bought $ 285.5 million for the bankrupt Rouge Steel, which was later renamed Dearborn [8] .
In August 2007, the company acquired a 22% stake in the Irish gold mining company Celtic Resources. The buyer in the interests of Severstal was its subsidiary company Bluecone Limited [9] .
In May 2008, Severstal closed the acquisition of Sparrows Point, an American metallurgical company, from ArcelorMittal for $ 810 million [10] . In July 2008, Severstal completed the acquisition of WCI Steel, located in the city of Warren, Ohio ( USA ). The company acquired all the outstanding shares of WCI Steel for $ 140 million in cash and later renamed it Severstal Warren, Inc. These investments were deemed not very successful: after several years, in March 2011, Severstal announced the sale of three of its five plants located in the United States (Severstal Warren, Severstal Wheeling and Severstal Sparrows Point) to the US company Renco Group for $ 1.2 billion (while the purchase of these three plants was spent $ 2.5 billion) [11] .
In the same 2008, the company became interested in foreign iron ore assets, buying 61.5% of the African Iron Ore Group for $ 37.5 million, which for 2010 confirmed reserves of 2.4 billion tons of ore at the Putu deposit in Liberia [12] . In May 2011, Severstal announced the acquisition of 25% of the Brazilian iron ore company SPG Mineracao for $ 49 million (there is an option for another 50% of this company), which owns iron ore deposits in the state of Amapa (northern Brazil ) with deposits of 0.5-1, 5 billion tons of iron ore [13] .
In July 2014, Severstal announced the signing of contracts for the sale of Severstal Dearborn and Severstal Columbus plants to AK Steel and Steel Dynamics, respectively [14] . Already in September 2014, these transactions for a total amount of $ 2,325 million [15] were closed [16] .
In July-August 2014, a deal was made to sell PBS Coals Inc., the coal-mining asset of Severstal, to the Canadian public company Corsa Coal Corp. [17] .
Thus, the 10-year period of the presence of Severstal in the United States as a manufacturer has ended.
On May 2, 2017, Severstal announced the closure of the sale of Redaelli Tecna SpA to the Austrian company Teufelberger Wirerope GmbH.
Attempt to merge with Arcelor
On May 26, 2006, Arcelor , one of the world's largest steel companies, announced plans to merge with Severstal. As a result of the transaction, the owner of Severstal, Alexei Mordashov , was to receive 295 million newly issued shares of Arcelor, which is equivalent to 32% of the share capital of the combined company. This share was estimated at 12.98 billion euros. In return, Arcelor was to receive from Mordashov all of his Severstal shares (82%), including Severstal North America, mining assets and a stake in the Italian metallurgical company Lucchini. In addition, Mordashov had to pay extra 1.25 billion euros in cash.
The merger of Arcelor and Severstal could lead to the creation of the largest metallurgical company in the world with annual sales of 46 billion euros, EBITDA of 9 billion euros and production of 70 million tons per year and become the largest transaction of Russian business abroad. However, Severstal’s offer was blocked by Mittal Steel’s proposal, which was eventually approved by the Arcelor board of directors. As a result, on June 30, 2006, the Arcelor shareholders ’meeting was against the Severstal proposal, thus endorsing the Mittal Steel proposal (thanks to the deal, ArcelorMittal was created).
Owners and management
The ultimate owners of Severstal are [6] :
- 77.03% of shares - Alexey Mordashov (through a number of Cyprus offshore companies [18] )
- 20.15% - Shares in free float on the stock exchange,
- 2.82% - Treasury shares .
According to the evaluation of the Autonomous Non-Profit Organization “Independent Financial Expertise”, the formal owners as of 01.03.2012 were:
- Astroshine Limited, Cyprus , Nicosia , 19.99% [19]
Anters Associates Limited, Virgin Islands, owns 100% of the share capital of Astroshine Limited
- Loranel Limited, Cyprus, Nicosia, 19.99% [19]
Lanton Enterprises Limited, Virgin Islands, owns 100% Loranel Limited
- Deutsche Bank Ltd. - nominal holder [19]
- Rayglow Limited, Cyprus, Limassol , 9.042% [19]
Huknal Associates Limited, Virgin Islands, owns 100% of Rayglow Limited.
- Bank Credit Suisse CJSC (Moscow) - Nominal holder [19]
- Lybica Holding BV, the Netherlands , 19.14% [19]
LLC Holding Mining Company, Russia, Vologda Region, Cherepovets, owns 100% of the share capital of Lybica Holding BV [19]
OAO Severstal, Russia, Vologda region, Cherepovets, - indirect control [19] .
The general meeting of shareholders is the supreme governing body of PAO Severstal.
The Board of Directors is responsible for the overall management of the company, and also provides effective control over financial and economic activities. The board of directors includes 10 people, 5 of whom are independent directors. The current structure of the Board of Directors provides a balance between five independent, non-executive directors, two non-executive directors and three executive directors.
On May 26, 2015, Alexey Mordashov [20] was elected Chairman of the Board of Directors of Severstal at the meeting of the Board of Directors of Severstal, Sakari Tamminen was approved as Senior Independent Director and Chairman of the Personnel and Remuneration Committee of the Board of Directors of Severstal. Independent Director Alin Bowen was elected Chairman of the Audit Committee of the Board of Directors of Severstal, and Independent Director Philip Dayer was elected Chairman of the Committee on Occupational Health, Safety and Environmental Protection of the Board of Directors of PAO Severstal [21] . Philip Dayer and Alan Bowen became independent members of the company's Board of Directors in June 2014. [22] They replaced Ronald Freeman and Peter Kralich, who quit the Board of Directors after the annual meeting of shareholders [23] .
In early November 2006, the company held an IPO on the London Stock Exchange and Russian stock exchanges. During the placement, shares worth $ 1.06 billion were sold; the company's capitalization at the placement was $ 12.7 billion.
Members of the Board of Directors [24] :
- Alexey Mordashov
- Vladimir Mau
- Sakari Tamminen
- Alexander Auzan
- Philip dayer
- Alin bowen
- Alexander Shevelev
- Vladimir Lukin
- Andrey Mityukov
- Alexey Kulichenko
From December 2016, Alexander Shevelev was appointed General Director of JSC Severstal Management, who headed the SVEZA group, and before that, Severstal-metiz (part of Severstal PJSC) [25] .
Activity
The company produces hot-rolled and cold-rolled steel products, bent profiles and pipes, long products, etc. The main steel-making enterprises owned by the company are: Cherepovets Steel Mill in Russia (11.6 million tons per year) [11] .
The company's mining segment is represented in Russia by two mining and processing plants (GOK): Karelsky Okatysh and Olkon , which annually produce 15 million tons of iron ore concentrate [12] , the coal company Vorkutaugol ( Komi Republic ), the coal company PBS Coals ( USA) and a number of promising mining licenses in developing countries of the world.
Performance Indicators
In 2012, the group produced more than 15.4 million tons of steel.
The company's revenue for 2012 under IFRS amounted to $ 14.1 billion, EBITDA - $ 2.119 billion, net profit - $ 762 million [26] .
In 2013, the company's revenue amounted to $ 9.434 million, EBITDA reached $ 1,818 million [27] .
In 2015, the company reached a record EBITDA margin of 32.8% [28] , revenue was $ 6.4 billion, EBITDA was $ 2.1 billion, and net profit was $ 562 million. The company also increased free cash flow to $ 1, 55 billion [29] .
The results of 2015 were achieved mainly due to an increase in sales of core products in the Russian Federation by 22.4% with a lower increase in cost, general and administrative expenses (average 10% -11%). [thirty]
The Group has significant free cash flow, which is mainly placed in Sberbank OJSC in dollar deposits. The total amount of cash exceeds 120 billion rubles. in ruble equivalent as of December 31, 2015 (28% of the total assets of the Group). [thirty]
Company businesses
Production, scrap and metalworking:
- Cherepovets Metallurgical Plant (located in Cherepovets );
- Severstal-metiz and subsidiaries Severstal Ropes [31] , UniFens, Steellace, UniSpring;
- Pipe-profile plant "Sheksna";
- Izhora Pipe Plant ;
- Severstal SMC-Kolpino;
- "Northwest Refractory";
- Severstal Vtorchermet;
- "Severstal-Mill Plant Balakovo" [32] ;
- Vorkutaugol ;
- " Karelian pellet ";
- Olenegorsky GOK ;
- Gestamp Automocion-Severstal JV is a Spanish-Russian joint venture. production of automotive components, dies, molds, located in the Kaluga region ;
- JV Gonvarri-Severstal is a Spanish-Russian joint venture (metal processing) located in the Kaluga region .
Repair:
- Domnaremont.
Sales:
- Severstal Distribution SIA (located in Riga , Latvia );
- Severstalbel;
- Trading House Severstal-Invest;
- Severstal-Ukraine;
- Severstal Export;
- Severstal Steel Solutions;
- Severstal Lifting Technologies is a service and distribution rope center for Severstal-metiz. [31]
Logistic:
- Stevedoring company "Neva Metal";
- Aviation Enterprise "Severstal" .
Engineering:
- Severstal Project;
- St. Petersburg-Giproshakht.
Service:
- Severstal Infocom.
In 2011, Severstal completed the consolidation of its gold mining assets and allocated it to the independent company Nordgold at the beginning of 2012.
Company Assets
Severstal Russian Steel
Severstal Russian Steel is one of the leading steel producers in Russia and specializes in sheet metal products with high added value [33] .
The division contains factories for the production of large-diameter pipes and hardware products, in addition, service centers and stamping enterprises producing automobile parts [34] .
Metallurgical enterprises
Cherepovets Steel Mill (CherMK) is included in the list of the world's largest integrated steel production plants. Its production capacity is about 11.6 million tons of steel per year [35] . The list of products includes: fittings, rod, circle, angle, channel, hexagon, ship steel, steel for bridge construction, construction of buildings and structures, electrical steel, galvanized steel, auto sheet, bend profiles, tubular billet, etc. In 2013 CherMK went out production volumes in the amount of 1.25 million tons of rolled products [36] . In 2014, CherMK master Alexander Dyachenko, who devoted more than three decades to production, became one of the heroes of the collection “The Soul of Russian Industry” - a project dedicated to the leading enterprises of the domestic industry, which is being implemented on the initiative of the Ministry of Industry and Trade. This edition will be published not only in our country, but also abroad [37] . The company has both international certificates (ABS, Bureau Veritas , Det Norske Veritas , Germanischer Lloyd's, Lloyd's Register, TÜV Rheinland ) and Russian ( Russian Maritime Register of Shipping , Russian River Register , GOST R ) [38] .
CJSC “Severstal - Long Products Plant Balakovo” is a new generation plant [39] in the Saratov region, where the production of long-rolled products for the construction industry was launched at the end of 2013 [40] , and in March 2014 the first heat was produced [41] . The design capacity of the plant is 1 million tons of long products per year. In May 2014, the plant mastered the production technology of structural steel [42] .
The company Severstal SMC-Kolpino, launched in St. Petersburg at the industrial site of Izhorskiye Zavody in 2008, performs sheet priming for shipbuilding enterprises, produces blanks for the engineering industry and a large welded profile for construction needs [43] .
The punching enterprise Gestamp-Severstal-Kaluga carries out a full cycle of steel rolled products and produces a range of products from coiled steel to automotive parts. Annual production is 13 million parts [44] .
In 2014, Gestamp, a company specializing in the production of metal components and assemblies for the automotive sector, expanded the company in Kaluga. Since 2010, the company has invested 180 million euros. The number of employees is about 400 people [44] .
Severstal-Gonvarri-Kaluga is a Russian-Spanish joint venture founded in May 2009. The goal of the company is to meet the needs of the automotive and electrical engineering and engineering industries. Severstal-Gonvarri-Kaluga provides a full range of services for the longitudinal and transverse dissolution of rolled metal products, the cutting of blanks for further processing of metal [45] .
Pipe production
Izhora Pipe Plant in Kolpino produces large-diameter pipes from strip. Key customers include oil and gas companies [46] . Izhora Pipe Plant was built in 2006 (investment in the project amounted to about $ 600 million). The production capacity of the plant is 600 thousand tons of pipes per year. One of the competitive advantages of the plant is the release of 18-meter pipes of large diameter [46] . In 2014, Severstal, represented by the Izhora Pipe Plant, won two tenders for the supply of large-diameter pipes for the construction of the offshore section of the South Stream gas pipeline [47] [48] .
TPZ Sheksna annually produces for the needs of the construction industry up to 250 thousand tons of electric-welded pipes, as well as square and rectangular profiles of various sections [49] .
Service Companies
Service companies are created to support the production processes of CherMK: equipment repair, engineering, other repair projects, as well as design projects.
Severstal Promservice specializes in the construction and assembly of equipment, the repair of power equipment, the production of steel parts and automotive systems, diagnostics and land surveying [50] .
Severstal Resource
Severstal Resource manages all the mining assets of Severstal. Enterprises mine iron ore and coking coal in Russia, as well as coking coal in the United States [51] . In Russia, the coal enterprise PJSC Severstal is among the five largest producers, and iron ore mining enterprises are leaders in terms of production in Russia [52] .
Iron Ore Mining and Enrichment
Severstal Resource includes two complexes for the extraction and enrichment of iron ore: Karelsky Okatysh (production of iron ore pellets) and Olkon (production of iron ore concentrate). The company Karelsky Okatysh is located in northwest Russia and produces 20% of all iron ore pellets in the country. Karelsky Okatysh also mines ferruginous quartzites [53] . In 2013, the production of pellets exceeded 10.4 million tons, and the volume of rock production - 50.5 million m3. The company Olkon is located in the Murmansk region and is the northernmost iron ore complex in Russia. The company mines ferruginous quartzite in open pits and produces iron ore concentrate. In addition to the main production, Olkon is the largest producer of crushed stone in the North-West region of Russia. In 2013, the complex produced 4.6 million tons of iron ore concentrate.
Coal mining
Coal mining in the company is engaged in the Vorkutaugol enterprise (Russia). Vorkutaugol is located in the Komi Republic in the north-eastern part of Russia. The company produces coking and steam coal and is one of Russia's largest producers of solid coking coal [54] . In 2013, Vorkutaugol produced 5.6 million tons of coking coal concentrate [55] .
Financial and production indicators The revenue of the Severstal Resources enterprises in 2012 was $ 3 million [56] . In 2013, the enterprises of Severstal Resource ”sold 15 million tons of pellets and iron ore concentrate, 7 million tons of coal [57] .
Severstal Hardware
Severstal-metiz produces more than 55 thousand types of products, which include wire, nails, cold-drawn steel, steel ropes, nets and fasteners. The total enterprise produces more than 1.5 million tons per year [58] . Severstal-metiz plants are located in Cherepovets, Orel and Volgograd.
OOO Stalemal
Located at the site of the Cherepovets Metallurgical Plant, has a branch in the city of Novokuznetsk.
Interesting Facts
The feature film “ Territory ” was shot with the support of Severstal [59] .
In honor of the 60th anniversary of the Cherepovets Metallurgical Combine, Denis Maidanov recorded and sang the song “Living Steel” [60] .
In the video “Partnership Symphony” [61] , the striker of the Severstal hockey club Daniil Vovchenko appeared.
PAO Severstal owns 98% of Ava-Peter, which unites 18 Ava-Peter and Scandinavia infertility treatment clinics. At the end of 2018, the network of Ava-Peter clinics ranked fifth in the ranking of the largest private clinics in Russia, compiled by Forbes magazine . In 2017, the revenue of the network of clinics amounted to 4.6 billion rubles [62] .
Notes
- ↑ 1 2 3 PAO Severstal and its subsidiaries. Consolidated financial statements for the years ended December 31, 2017, 2016 and 2015 (February 2, 2018). The appeal date is July 8, 2018.
- 2 1 2 http://www.severstal.com/files/19931/_Severstal_FS_31122016_.pdf
- ↑ Severstal - Overview
- ↑ Severstal - Business - Severstal Russian Steel . The date of circulation is March 19, 2013. Archived March 21, 2013.
- ↑ Severstal - Business - Severstal Resource . The date of circulation is March 19, 2013. Archived March 21, 2013.
- ↑ 1 2 Severstal - Share capital . www.severstal.com. The appeal date is April 18, 2018.
- 2 1 2 Consolidated financial statements for the years ended December 31, 2010, 2009 and 2008 . // severstal.com. The appeal date is May 12, 2011. Archived February 9, 2012.
- ↑ VEDOMOSTI - Severstal has found buyers for US assets
- ↑ Fedorinov Y. Mordashov became rich // Vedomosti, № 151 (1925), August 15, 2007
- ↑ In brief // Vedomosti, № 84 (2106), May 12, 2008
- ↑ 1 2 Olga Alekseeva . Severstal departed from the USA by half // gazeta.ru (Verified March 3, 2011)
- ↑ 1 2 Alexandra Terentyeva. Mordashov puts on ore . // Vedomosti, 12.05.2011, No. 84 (2850). The appeal date is May 12, 2011. Archived May 31, 2012.
- Север Severstal bought reserves of iron ore in Brazil . // vedomosti.ru. The date of circulation is May 11, 2011. Archived May 31, 2012.
- ↑ b-newspaper - Severstal closes America
- ↑ OJSC Severstal announces the signing of contracts for the sale of the Severstal Columbus and Severstal Dearborn plants for US $ 2,325 million // Companies // News | Neftegaz.RU
- ↑ Severstal - Severstal announces the closure of deals to sell Columbus and Dearborn plants
- ↑ Severstal - Severstal announces the closure of the sale of PBS Coals
- ↑ Public Joint-Stock Company Severstal. LIST OF AFFILIATED PERSONS (rus.) // Public Joint Stock Company Severstal: LIST OF AFFILATED PARTIES. - 162608, Russia, Vologda region, Cherepovets, Mira st., 30, 2018. - March 31. - p . 10 .
- ↑ 1 2 3 4 5 6 7 8 OAO Severstal. Company history, equity structure, financial analysis, stock price. Severstal Rating
- ↑ Северсталь — Алексей Мордашов
- ↑ Северсталь - Совет Директоров ПАО Северсталь избрал А.Мордашова Председателем и С.Тамминена Старшим Независимым Директором . www.severstal.com. Дата обращения 2 февраля 2016.
- ↑ Северсталь — Результаты годового собрания акционеров ОАО «Северсталь»
- ↑ Финам.ru — «Северсталь» сменит двух независимых членов совета директоров — Новости компаний
- ↑ Северсталь - Члены совета директоров . www.severstal.com. Дата обращения 9 июля 2018.
- ↑ Северсталь - Александр Шевелев . www.severstal.com. Дата обращения 9 июля 2018.
- ↑ Северсталь - «Северсталь» сообщает финансовые результаты своей работы за четвертый квартал и двенадцать месяцев 2012 года . Дата обращения 19 марта 2013. Архивировано 21 марта 2013 года.
- ↑ http://www.severstal.com/files/10819/Severstal%20-%20Q3_2014%20Press%20Release%20RUS_FINAL.pdf
- ↑ «Северсталь» показала рекордную рентабельность в кризис . RBC. Дата обращения 6 февраля 2016.
- ↑ Северсталь - Северсталь сообщает финансовые результаты своей работы за четвертый квартал и двенадцать месяцев 2015 года . www.severstal.com. Дата обращения 6 февраля 2016.
- ↑ 1 2 Анализ отчетностей по МСФО . Анализ отчетностей по МСФО. Дата обращения 10 февраля 2016.
- ↑ 1 2 Северсталь-метиз / Пресс-центр / Новости / ОАО «Северсталь-метиз» объявляет о переименовании ряда активов . metiz.severstal.com. Дата обращения 6 сентября 2017.
- ↑ Северсталь создала дочку — «Сортовой завод Балаково»
- ↑ Финам.ru — Инвестиционные идеи : Отрасли и компании : ПАО «Северсталь» Котировки, стоимость, курс акций Северсталь. Купить акции Северсталь
- ↑ http://www.severstal.com/files_archive/files/10701/Severstal_AR2012_Rus.pdf
- ↑ Северсталь — Череповецкий металлургический комбинат
- ↑ ЧерМК в 2013 году вышел на максимальный объем производства сортового проката
- ↑ Мастер «Северстали» станет героем издания «Душа российской промышленности» — Рамблер-Новости
- ↑ ЧерМК / О компании
- ↑ „Северсталь — Сортовой завод Балаково“ запускает мощности по переработке сталеплавильного шлака
- ↑ Сортовой завод Балаково / Пресс-центр / Новости / Продолжаются пусконаладочные работы на мини-заводе в Балакове
- ↑ Северсталь — На „Северсталь — Сортовой завод Балаково“ получена первая плавка
- ↑ Северсталь — На „Северсталь — Сортовой завод Балаково“ освоили технологию производства фасонного проката
- ↑ О компании Северсталь СМЦ-Колпино
- ↑ 1 2 Новости. Корпорация развития Калужской области
- ↑ Северсталь-Гонварри-Калуга / О компании
- ↑ 1 2 Ижорский трубный завод / О компании
- ↑ Ижорский трубный завод
- ↑ Ижорский трубный завод
- ↑ ТПЗ „Шексна“ / О компании
- ↑ Северсталь-Промсервис / О компании
- ↑ http://minenergo.gov.ru/activity/coalindustry/coalsector/company/972.html
- ↑ Ошибка 404
- ↑ Северсталь — Карельский окатыш
- ↑ Воркутауголь / О компании
- ↑ http://www.severstal.com/rus/ir/results_reports/operational_results/20140123.pdf
- ↑ Русский
- ↑ Северсталь — Северсталь объявляет операционные результаты за четвертый квартал и двенадцать месяцев 2013 года
- ↑ Северсталь-метиз / О компании
- ↑ Северсталь - Художественный фильм «Территория» о героическом труде геологов-первооткрывателей снят при поддержке «Северстали» . www.severstal.com. Дата обращения 7 февраля 2016.
- ↑ Северсталь. Денис Майданов - "Живая сталь" (21 октября 2015). Дата обращения 6 февраля 2016.
- ↑ Северсталь. "Северсталь". Симфония партнерства. (15 июля 2016). Дата обращения 3 августа 2016.
- ↑ Doctor help: rating of the largest private clinics in Russia. 5. «Ава-Петер» | Career and your business (English) (Neopr.) ? . Forbes.ru (November 2, 2018). The appeal date is March 8, 2019.
Literature
- Челноков Б. В. «Так начиналась Северсталь», Череповец, ООО «Метранпаж», 1999