14th Apr 2008 10:18
OAO Severstal14 April 2008 OAO SEVERSTAL ANNOUNCES REORGANIZATION TO FACILITATE FURTHER GROWTH MOSCOW, Russia - April 14, 2008: OAO Severstal (,Severstal', LSE: SVST, RTS:CHMF), one of the world's leading metals and mining companies, today announcedthat it is reorganising its businesses into three principal divisions: SeverstalRussian Steel, Severstal Resourses and Severstal International. The new structure, taking effect in April, will reduce the number of reportinglines between individual operations and senior management, ensuring greateroperating efficiency and capitalizing on Severstal's international diversity byproviding for the continued growth of the global business. This development marks a logical next step in Severstal's corporate maturationfollowing the Company's 2006 listing on the London Stock Exchange and thevertical integration process that consolidated its mining and metallurgicalassets in Russia and Europe. The organizational realignment will also reinforcethe 2006 adoption of Severstal's Code of Corporate Governance by streamliningthe reporting structure between individual operations and the Company's seniormanagement. Alexey Mordashov, Severstal CEO, said: "This restructuring is a logical nextstep in Severstal's development, reflecting our already strong position as anintegrated metals and mining business with a growing international focus. Thesimplified, more focused structure will serve to improve our competitiveness,increase production, cut costs and maximise profit." The new structure of Severstal will be as follows: • Severstal Russian Steel - ine of Russia's largest steel producers. Severstal Russian Steel will include the following segments: steel, pipe, metalware and services as well as scrap procurement operations. Anatoly Kruchinin, currently CEO of Cherepovets Steel Mill, has been appointed as CEO of Severstal Russian Steel. • Severstal Resources - nomprising Severstal's assets relating to iron ore, coal and gold extraction. The division includes mining and gold-mining segments. It is one of Russia's largest producers of pellets and coking coal. Roman Deniskin will remain CEO of the division. • Severstal International - a newly established division, comprising European (Lucchini Group) and North American (Severstal North America (SNA) and SeverCorr) segments. Gregory Mason, Corporate COO of OAO Severstal, has been named CEO of the division. Under the new structure four functional areas and four service and support areaswill be established. Functional areas: • Operations - headed by Gregory Mason, COO and CEO of Severstal International • Finance - headed by Sergei Kuznetsov, CFO • Corporate Development - headed by Thomas Verazto, Senior Vice President (SVP) • Human Resources - headed by Andrei Mityukov, SVP Service and Support areas: • Legal Affairs - headed by Dmitry Sanin, SVP & General Council • External Relations - headed by Alexei Yegorov, SVP • Communications and Public Relations - headed by Vadim Saveliev, SVP • Security - headed by Vladimir Kozlov, SVP In 2008, Severstal's financials will be reported according to the 2007divisional structure. Notes to Editors Anatoly Kruchinin Anatoly Kruchinin began his career at Severstal in 1982. In 1993, he becameChief Power Engineer of Severstal and in March 1999 he was made CommercialDirector. From January 2002, he worked as Executive Director, becomingSeverstal's CEO in July 2002. Since December 2006, he has been General-Directorof Cherepovets Steel Mill. He is Chairman of the Board of Directors ofSeverstal-metiz, ZAO Severgal, AO Severstallat and Izhora Pipe Mill. Anatoly isa graduate of the Ivanovo Power Engineering Institute and holds an MBA degreefrom National Economic Academy under the Government of Russia. Gregory Mason Gregory Mason joined Severstal in 2004 having previously been a managing partnerin Metal Strategies, an international metals industry management consultingfirm. In 2006 he was appointed as Chief Operating Officer of Severstal. Previousroles include Vice President of the Detroit Steel Company, Technical Director ofCaparo Steel, Director of Steelmaking Technology at Davy International and ChiefEngineer at KRUPP Industries (a division of KRUPP Stahl). Gregory is aregistered professional engineer in the USA. He received his master's degreefrom the Naval University of St. Petersburg. Roman Deniskin Roman Deniskin has been Director General of Severstal-resurs since 2002. From1995 to 2002 Roman worked in the Moscow office of McKinsey & Company, advisingsteel, mining and smelting companies in Russia, the US and the UK. Roman has amathematics and mechanics degree from Moscow State University, from where hegraduated magna cum laude, and an MA in economics from Ann Arbor University(Michigan). About SeverStal OAO Severstal is an international steel producer with a listing on the RussianTrading System and the London Stock Exchange. Incorporated in 1993, the companyfocuses on high value added and unique niche products and has a successful trackrecord of acquiring and integrating high-quality assets in North America andEurope. Severstal owns mining assets in Russia, thus securing its supplies ofraw materials. In 2007, Severstal produced 17.5 million tons of steel. Revenueswere $15.2 billion and EBITDA was $3.7 billion. EPS was $1.92. Disclaimer These materials may contain forecasts or other assumptions relating to futureevents or future financial results of OAO Severstal (hereinafter - "Severstal").A specific feature of such assumptions is the use of such words as "to expect","to believe", "to assume", "to count on", "to intend", "to wish", "probably","may" or "could be" in positive or negative form, or other similar expressions.Severstal cautions that such assumptions are just forecasts, and actual eventsor results may deviate therefrom substantially. Severstal does not intend toadjust such assumptions in order to reflect events or circumstances havingoccurred after the date indicated herein, or to reflect occurrence ofconjecturable events. The factors which may cause substantial deviation ofactual results from those contained in Severstal forecasts or conjecturesinclude, inter alia, general economic situation on the markets where it carriesout its activities, competitive environment and risks relating to activities onsuch markets, market changes in steel and mining industries, as well as numerousother risks affecting Severstal or its production activities. Additional information: SeverStalDmitry Druzhinin, Investor RelationsOlga Antonova, Public Relations+7 495 540 7766 Taylor Rafferty (US)Michael Henson+1 212 889 4350 (o)+1 917 902 0767 (m) John Dudzinsky +1 212 889 4350 (o)+1 646 715 2980 (m) Tulchan (UK & EU)Dominic Fry+44 20 7353 4200 (o)+44 7801 445378 (m) Tom Murray+44 20 7353 4200 (o) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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