Severstal (russian: Северсталь, , Northern Steel) is a Russian company mainly operating in the
steel
Steel is an alloy made up of iron with added carbon to improve its strength and fracture resistance compared to other forms of iron. Many other elements may be present or added. Stainless steels that are corrosion- and oxidation-resistant ty ...
and
mining
Mining is the extraction of valuable minerals or other geological materials from the Earth, usually from an ore body, lode, vein, seam, reef, or placer deposit. The exploitation of these deposits for raw material is based on the economic via ...
industry, headquartered in
Cherepovets
Cherepovets ( rus, Череповец, p=tɕɪrʲɪpɐˈvʲɛts) is a city in Vologda Oblast, Russia, located in the west of the oblast on the banks of the Sheksna River (a tributary of the Volga River) and on the shores of the Rybinsk Reservoir. ...
. Severstal is listed on the
Moscow Exchange
The Moscow Exchange (MOEX; rus, Московская биржа, r=Moskovskaya birzha, p=mɐˈskofskəjə ˈbʲirʐə, a=) is the largest exchange in Russia, operating trading markets in equities, bonds, derivatives, the foreign exchange market, ...
and
LSE LSE may refer to:
Computing
* LSE (programming language), a computer programming language
* LSE, Latent sector error, a media assessment measure related to the hard disk drive storage technology
* Language-Sensitive Editor, a text editor used ...
and is the largest steel company in Russia. The company is majority-owned and controlled by billionaire
Alexey Mordashov
Alexey Alexandrovich Mordashov ( rus, Алексей Александрович Мордашов; born 26 September 1965) is a Russian billionaire businessman. He is the main shareholder and chairman of Severstal, Russia's largest steel and mini ...
.
Severstal owns major industrial facilities in
Russia
Russia (, , ), or the Russian Federation, is a List of transcontinental countries, transcontinental country spanning Eastern Europe and North Asia, Northern Asia. It is the List of countries and dependencies by area, largest country in the ...
,
Ukraine
Ukraine ( uk, Україна, Ukraïna, ) is a country in Eastern Europe. It is the second-largest European country after Russia, which it borders to the east and northeast. Ukraine covers approximately . Prior to the ongoing Russian inv ...
,
Kazakhstan
Kazakhstan, officially the Republic of Kazakhstan, is a transcontinental country located mainly in Central Asia and partly in Eastern Europe. It borders Russia to the north and west, China to the east, Kyrgyzstan to the southeast, Uzbeki ...
,
France
France (), officially the French Republic ( ), is a country primarily located in Western Europe. It also comprises of Overseas France, overseas regions and territories in the Americas and the Atlantic Ocean, Atlantic, Pacific Ocean, Pac ...
, and
Italy
Italy ( it, Italia ), officially the Italian Republic, ) or the Republic of Italy, is a country in Southern Europe. It is located in the middle of the Mediterranean Sea, and its territory largely coincides with the homonymous geographical re ...
, 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
Hockey Club Severstal is a professional ice hockey team based in Cherepovets, Vologda Oblast, Russia. They are members of the Tarasov Division in the Kontinental Hockey League.
History
Founded in 1956, the club was originally known as Stroitel ...
, a professional
ice hockey
Ice hockey (or simply hockey) is a team sport played on ice skates, usually on an ice skating rink with lines and markings specific to the sport. It belongs to a family of sports called hockey. In ice hockey, two opposing teams use ice hock ...
club which plays in the
Kontinental Hockey League
The Kontinental Hockey League (KHL; russian: Континентальная хоккейная лига (КХЛ), Kontinental'naya khokkeynaya liga) is an international professional ice hockey league founded in 2008. It comprises member clubs ba ...
and
Severstal Air Company
Severstal Aircompany (Северсталь) is an airline with its head office on the property of Cherepovets Airport in Botovo village, Cherepovetsky District, Russia.
Destinations
As of July 2022, Severstal Aircompany operates services to the ...
, an airline operating mainly from
Vnukovo International Airport
Vnukovo, formally Vnukovo Andrei Tupolev International Airport (named after Andrei Tupolev) ( rus, links=no, Внуково, p=ˈvnukəvə) , is a dual-runway international airport located in Vnukovo District, southwest of the centre of Moscow, ...
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. It's
ranked 37 among the largest steel makers. In 2021, Severstal was ranked no. 27 out of 120 oil, gas, and mining companies involved in resource extraction north of the Arctic Circle in the Arctic Environmental Responsibility Index (AERI).
History
1930s–1993: formation and transformation
During the early 1930s, deposits of
iron ore
Iron ores are rocks and minerals from which metallic iron can be economically extracted. The ores are usually rich in iron oxides and vary in color from dark grey, bright yellow, or deep purple to rusty red. The iron is usually found in the fo ...
were discovered on the
Kola Peninsula
sjd, Куэлнэгк нёа̄ррк
, image_name= Kola peninsula.png
, image_caption= Kola Peninsula as a part of Murmansk Oblast
, image_size= 300px
, image_alt=
, map_image= Murmansk in Russia.svg
, map_caption = Location of Murmansk Oblas ...
and, at about the same time large quantities of
coal
Coal is a combustible black or brownish-black sedimentary rock, formed as rock strata called coal seams. Coal is mostly carbon with variable amounts of other elements, chiefly hydrogen, sulfur, oxygen, and nitrogen.
Coal is formed when dea ...
were discovered in the area of
Pechora
Pechora (russian: Печо́ра; kv, Печӧра, ''Pećöra'') is a town in the Komi Republic, Russia, located on the Pechora River, west of and near the northern Ural Mountains. The area of the town is . Population:
History
Pechora was ...
. 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
The Government of the Soviet Union ( rus, Прави́тельство СССР, p=prɐˈvʲitʲɪlʲstvə ɛs ɛs ɛs ˈɛr, r=Pravítelstvo SSSR, lang=no), formally the All-Union Government of the Union of Soviet Socialist Republics, commonly ab ...
published a resolution "''On The Organisation of Steel Making in the North-West of the USSR''", which created a
steel mill
A steel mill or steelworks is an industrial plant for the manufacture of steel. It may be an integrated steel works carrying out all steps of steelmaking from smelting iron ore to rolled product, but may also be a plant where steel semi-finish ...
in
Cherepovets
Cherepovets ( rus, Череповец, p=tɕɪrʲɪpɐˈvʲɛts) is a city in Vologda Oblast, Russia, located in the west of the oblast on the banks of the Sheksna River (a tributary of the Volga River) and on the shores of the Rybinsk Reservoir. ...
, a city accessible by both the
Leningrad
Saint Petersburg ( rus, links=no, Санкт-Петербург, a=Ru-Sankt Peterburg Leningrad Petrograd Piter.ogg, r=Sankt-Peterburg, p=ˈsankt pʲɪtʲɪrˈburk), formerly known as Petrograd (1914–1924) and later Leningrad (1924–1991), i ...
-
Ekaterinburg
Yekaterinburg ( ; rus, Екатеринбург, p=jɪkətʲɪrʲɪnˈburk), alternatively romanized as Ekaterinburg and formerly known as Sverdlovsk ( rus, Свердло́вск, , svʲɪrˈdlofsk, 1924–1991), is a city and the administrat ...
railway and by the
Volga–Baltic Waterway
The Volga–Baltic Waterway (Volgobalt, Волгобалт), formerly known as the Mariinsk Canal System (Russian: Мариинская водная система), is a series of canals and rivers in Russia which link the Volga with the Balti ...
.
In 1947, the construction of Cherepovets Steel Mill was completed.
Facility construction accelerated after the end of
World War II
World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...
, 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
The Soviet Union,. officially the Union of Soviet Socialist Republics. (USSR),. was a transcontinental country that spanned much of Eurasia from 1922 to 1991. A flagship communist state, it was nominally a federal union of fifteen national ...
.
On 24 September 1993, a decree by the
President of Russia
The president of the Russian Federation ( rus, Президент Российской Федерации, Prezident Rossiyskoy Federatsii) is the head of state of the Russian Federation. The president leads the executive branch of the federal ...
,
Boris Yeltsin
Boris Nikolayevich Yeltsin ( rus, Борис Николаевич Ельцин, p=bɐˈrʲis nʲɪkɐˈla(j)ɪvʲɪtɕ ˈjelʲtsɨn, a=Ru-Boris Nikolayevich Yeltsin.ogg; 1 February 1931 – 23 April 2007) was a Soviet and Russian politician wh ...
, transformed the state-owned Cherepovets Iron and Steel Complex into the Severstal open
joint-stock
A joint-stock company is a business entity in which shares of the company's stock can be bought and sold by shareholders. Each shareholder owns company stock in proportion, evidenced by their shares (certificates of ownership). Shareholders are ...
company.
2004–2011: international expansion and acquisitions
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
Gruppo Lucchini was the third largest Italian steel group after Gruppo Riva and Techint, with a 2005 production of 3.5 million tonnes. It is specialized in high quality long and special carbon steel products.
In 2005 the Russian steel and mining ...
.
In June 2005, Severstal acquired a listing on MICEX SE.
In March 2006, the company launched an offer for the French conglomerate
Arcelor
Arcelor S.A. was the world's largest steel producer in terms of turnover and the second largest in terms of steel output, with a turnover of €30.2 billion and shipments of 45 million metric tons of steel in 2004. The company was created in 2002 ...
. The offer did not materialize and Arcelor was instead acquired by
Mittal Steel
Mittal Steel Company N.V. was an Indian company and one of the world's largest steel producers by volume and turnover. After a merger in 2005, it is now part of ArcelorMittal.
History
Mittal Steel Company was formed as Ispat International in 19 ...
on 25 June 2006 to create
Arcelor Mittal
ArcelorMittal S.A. is a Luxembourgian multinational steel manufacturing corporation headquartered in Luxembourg City. It was formed in 2006 from the takeover and merger of Arcelor by Indian-owned Mittal Steel. ArcelorMittal is the second larg ...
.
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 acquired Sparrows Point, a steel mill in Maryland, USA, from Arcelor Mittal.
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 July 2008, Severstal acquired WCI Steel mill in
Warren, Ohio
Warren is a city in and the county seat of Trumbull County, Ohio, United States. Located in northeastern Ohio, Warren lies approximately northwest of Youngstown and southeast of Cleveland. The population was 39,201 at the 2020 census. The his ...
, 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 March 2010, the company acquired all the shares of
Gruppo Lucchini
Gruppo Lucchini was the third largest Italian steel group after Gruppo Riva and Techint, with a 2005 production of 3.5 million tonnes. It is specialized in high quality long and special carbon steel products.
In 2005 the Russian steel and mining ...
from the Lucchini family and became the only shareholder of the company.
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.
In March 2011, the company sold its facilities in Warren, Wheeling and Sparrows Point.
Developments since 2013
On February 11, 2013, the company's Vorkutinskaya mine, in the
Komi Republic
The Komi Republic (russian: Республика Коми; kv, Коми Республика), sometimes simply referred to as Komi, is a republic of Russia located in Eastern Europe. Its capital is the city of Syktyvkar. The population of the ...
in northern
Russia
Russia (, , ), or the Russian Federation, is a List of transcontinental countries, transcontinental country spanning Eastern Europe and North Asia, Northern Asia. It is the List of countries and dependencies by area, largest country in the ...
, 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
Dearborn is a city in Wayne County in the U.S. state of Michigan. At the 2020 census, it had a population of 109,976. Dearborn is the seventh most-populated city in Michigan and is home to the largest Muslim population in the United States pe ...
to
AK Steel Holding
AK Steel Holdings Corporation was a steelmaking company headquartered in West Chester Township, Butler County, Ohio. The company, whose name was derived from the initials of Armco, its predecessor company, and Kawasaki Steel Corporation, was a ...
for $700 million, and its mini-mill in
Columbus, Mississippi
Columbus is a city in and the county seat of Lowndes County, on the eastern border of Mississippi, United States, located primarily east, but also north and northeast of the Tombigbee River, which is also part of the Tennessee-Tombigbee Waterwa ...
, 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.
In December 2021, according to group's
decarbonization
Climate change mitigation is action to limit climate change by reducing emissions of greenhouse gases or removing those gases from the atmosphere. The recent rise in global average temperature is mostly caused by emissions from fossil fuels b ...
strategy, Severstal agreed to sell "Vorkutaugol" to "Russkaya energia" LLC for 15 billion roubles. The approval of the deal was postponed by
Federal Antimonopoly Service
The Federal Antimonopoly Service of Russia (FAS) (russian: Федеральная антимонопольная служба России, ФАС России) is the federal-level executive governmental organ that controls the execution of the ...
in February 2022.
EU sanctions
Following
Russia's invasion of Ukraine in February 2022, the
European Union
The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been des ...
placed sanctions on Severstal's majority shareholder,
Alexey Mordashov
Alexey Alexandrovich Mordashov ( rus, Алексей Александрович Мордашов; born 26 September 1965) is a Russian billionaire businessman. He is the main shareholder and chairman of Severstal, Russia's largest steel and mini ...
, on 28 February. This forced the company to cease its steel shipments to Europe.
Sustainable Development
Sustainable development is one of the strategic priorities for Severstal, according to its annual reports. Starting 2010, the company has annually released a Corporate Social Responsibility and Sustainable Development report.
In 2018, Severstal joined the
UN Global Compact
The United Nations Global Compact is a non-binding United Nations pact to encourage businesses and firms worldwide to adopt sustainable and socially responsible policies, and to report on their implementation. The UN Global Compact is a princi ...
.
Environment
In 2018, Severstal became one of the pilots of the
World Steel Association
World Steel Association, often abbreviated as worldsteel, is the international trade body for the iron and steel industry. The association is one of the largest and most dynamic industry associations in the world, with members in every major st ...
’s programme to reduce greenhouse gas emissions by the global steel industry 'Step up'.
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.
Severstal reported Total
CO2e emissions (Direct + Indirect) for the twelve months ending 31 December 2020 at 27,860
[Alt URL]
/ref> Kt (-250 /-0.9% y-o-y). There is no evidence of a consistent declining trend as yet.
References
External links
*
{{DEFAULTSORT:Severstal
Companies listed on the Moscow Exchange
Iron ore mining companies
Mining companies of Russia
Steel companies of Russia
Steel companies of the Russian Soviet Federative Socialist Republic
Russian brands
Companies based in Vologda Oblast
Mining companies of the Soviet Union
Severstal