Leading Enterprises

Severstal is a leading international steel producer headquartered in Cherepovets. It is a Russia-based group of companies involved in three main business segments: steel, mining and metalware. The steel segment unites steel producing, repair and trade companies. It operates full cycle integrated iron and steel mills in Russia, Italy and the United States and has supporting companies for the sale of products in the Russian and international markets. Its main production asset is Cherepovets Steel Mill.

In Russia Severstal is the prime high-quality supplier of steel pipes for the construction, automotive, machinery, and oil and gas industries. It offers cold-rolled stock in sheets and rolls, from 0.5 to 2.5 mm thick and up to 1,500 mm wide, including automobile sheet steel and sheet for enamelling. The company supplies large-diameter pipes for ESPO-II. Its production meets all the prescribed requirements of ISO standard: ISO 9001:2000 and ISO/TS 16949, ISO 14001 for environmental management system, OHSAS 18001 for occupational health and safety management systems.

The company focuses on increasing profitability by selling more value-added products.

Severstal's rolling shop produces hot-rolled and cold-rolled sheets, zinc-plated and aluminozinc-plated sheets, and merchant shapes.

The company produces stainless steel. One of its greatest technical achievements is the production of clad cast steel - a sheet consisting of two or three layers of different grades. Two-layer and three-layer rolled stock is used in chemical, food and agricultural machine-building industries.

Hot-rolled cast steel is produced at sheet rolling shops. The assortment includes sheets 8 mm to 50 mm thick and 2,500 mm wide, as well as sheets 1.5 mm to 12 mm thick and 1,800 mm wide.

The reinforcing steel for ferro-concrete construction is delivered both in reels and rods, from 6 to 40 mm in diameter.

Apart from zinc-plated rolled stock which is in high demand, noteworthy are Severstal's new products which far exceed the zinc-plated steel in technical and operational attributes. The point at issue is the aluminozinc-plated rolled stock.

The company has also mastered the production of arc welding steel sheets of different shapes: round, square, rectangular and flat-oval.

Jointly with Air Liquide (France), Severstal set up its own air separation unit to meet the increasing requirements in oxygen of the Cherepovets site. This unit which was designed and assembled by Air Liquide's engineering department was commissioned in 2007. It is the largest air separation unit in Russia and the largest in the world dedicated to steel production. With a capacity of 3,000 tonnes of oxygen a day, it supplies the steel mill with high purity, high-pressure oxygen, as well as nitrogen and argon.

In 2007 Severstal joined the Living Steel programme as a full member. Severstal united with Living Steel to achieve the common objective of providing innovative and efficient steel housing solutions for the global housing shortage. It is the eleventh full member to join Living Steel, which also includes Arcelor Mittal, Baosteel, BlueScope Steel, Corus, Celsa, Erdemir, IMIDRO, POSCO, Ruuki and Tata Steel.

At the end of 2010 the company successfully commissioned a new hot dip galvanizing line. The launch of this new state-of-the-art facility strengthened Severstal's presence in the automotive industry. The line is capable of producing 400,000 tons of hot-dipped galvanized steel annually.

In 2011 Cherepovets commissioned its second color-coating line (CCL-2). The new line will double the plant's output of pre-painted galvanized iron, in line with Severstal's stated strategic focus on increasing output of high value-added products. CCL-2 is designed to produce up to 200,000 tons per annum of coated hot dip rolled products. Thus, the annual production of pre-painted galvanized iron reaches 400,000 tons per year, and the company's share in the Russian polymer-coated galvanized steel market increased by 20%. The new line is ecologically friendly, and includes an air reburning plant to reburn furnace off-gases (polymer coating solvent vapor mixture) at 900 С, improving its energy efficiency.

In March 2012 PAO Severstal and RÜTGERS Group, Europe’s leading manufacturer of chemical raw materials made from coal tar, set up a joint venture - RÜTGERS SEVERTAR in Cherepovets.

The total amount of investment in the joint venture was US$26.6 mln. The venture manufactures vacuumized pitch, industrial oils, and naphthalene. RÜTGERS SEVERTAR is planned to reach its ultimate operating rate in 2013.

Both domestic and foreign aluminum industries will become the major consumers of vacuumized pitch, technical oils and naphthalene. According to tentative forecasts, the share of export shipments will amount to about 60% of the joint venture's total sales.

In 2012 PAO Severstal commissioned its new No.7 coke-oven battery (KB-7) following a reconstruction project which had received investment of about 4.5 billion rubles.

This project to reconstruct KB-7 is part of a wider investment program aimed at developing company’s assets to meet its coke production targets.

The new unit produces 700,000 tonnes of coke per year, 100,000 tonnes more than the old battery could. With the new battery on stream, Cherepovets Steel Mill increased its in-house coke production by 15% a year.

To help mitigate the new battery’s environmental impact, KB-7 features a dust-free coke pushing unit (three out of the Cherepovets Steel Mill’s eight coke-oven batteries have now been equipped with these units) as well as a new gas removal system (HPLA gasholder) that will enable smoke-free charging of coal in the battery’s sintering furnace chambers.

These, alongside a host of other leading-edge environmental solutions, helped to reduce atmospheric dust emissions at the new KB-7 by approximately 90%, or about 600 tonnes per year.

In December 2012 ZAO Air Liquide Severstal, a joint venture between Air Liquide and PAO Severstal launched a plant to produce industrial gases for CherMC at Cherepovets Steel Mill. The total investment in the project reached 50 million euros.

The daily production capacity of the plant is two thousand tons of gaseous oxygen. As well as oxygen the unit produces nitrogen, argon and rare gases.

The new air separation plant has been designed and constructed by Air Liquide on time and on budget and to the highest safety standards. It is operated by Air Liquide Severstal. Together with existing plant the new facility enables Air Liquide Severstal to build up its production capacity at the site to five thousand tons of gaseous oxygen per day.

The plant incorporates cutting-edge energy-efficient technologies designed to help minimize global warming and will reduce annual atmospheric emissions of carbon dioxide (CO2) by 24 thousand tons.

Every year PAO Severstal spends millions roubles on research and development. The company maintains a full time advanced engineering staff capable of state-of-the-art innovative developments.

It is the recipient of numerous European and American awards, the Metal Expo trade show awards, the Gold Star International award for quality and the Golden Mercury. Innovation techniques developed by the company are registered in a database of the Federal Agency for intellectual property, patents and trade marks "100 Russia's Best Inventions". Severstal's activity in the sphere of ecology was given a positive assessment at the contest "100 Russia's Best Companies. Ecology and Ecological Management".

Severstal is one of the majors in the US, Italy and France with premium customers in the automotive, energy, construction, household appliances, and packaging industries.

Key strategy of the enterprise:

• maintain competitiveness;
• increase production and assortment;
• provide energy supply security;
• modernisation of production facilities;
• add on internal power generation capacity;
• environmental protection.

OAO Severstal-Metiz
1/33 ul. 50-letiya Oktyabrya, Cherepovets, Russia, 162600
Phone: (8202) 53-87-66
Fax: (8202) 53-95-67
E-mail: info@severstalmetiz.com
http://www.severstalmetiz.com/eng/index.shtml

Severstal-metiz is a group of companies which unites the metalware assets of the Severstal company. It is among the Top-5 European producers of wire and wire products in its segment. The company's primary production facilities are geographically diverse, with locations in Russia, Ukraine, and Italy. Major customers are in construction, oil and gas, automotive, metallurgy and engineering.

Over the last years the plant has introduced and mastered all basic production capacities: low-carbon wires, electrodes, nails, metal grids, steel shapes, calibrated steel, clamps, high-carbon wires, low-carbon wires, wire ropes, mesh and mesh constructions, railway fasteners, general purpose fasteners, steel cords, cold-drawn steel and steel with special surface (peeled) and other goods.

The trade mark of OAO Severstal-Metiz is well-known in Russia. The mill is also establishing a firm foothold on the world market.

For the first time ever in Russia the plant started production of cold-drawn fixtures made of low-carbon steel instead of hot-rolled fixtures made of alloyed steel, the way metallurgists still do. In consumer qualities, the plant's fixtures No.5-14, strength category A400 and A500 are equal to the best domestic and foreign analogues. These fixtures are used in the production of welded grids with 100 to 300 mm cells; the width of the sheet is 1,000 to 2,600 mm. This grid can be used in the manufacture of safety devices and greenhouse frames, and in construction where its application in precast ferro-concrete (instead of single type wire) does not require welding.

As a part of the large-scale modernization program the company implemented one of the major investment projects of 2011 - construction of a new water processing cycle for a more efficient equipment cooling at the Cherepovets steel wire production facilities.

OAO Severstal-Metiz is constantly exploring new, alternative to zinc, coatings. It has already produced and marketed the first batches of wires and nets with enamel and polymer coatings. They are more resistant to corrosion than the zinc ones and have a fine decorative cover which lasts for a long period of time.

The plant's produce is exported within the CIS and to more than 30 foreign countries (Western Europe, America, Africa, Central and South-Eastern Asia). The nails produced at the plant have a market in the USA and Germany; steel cables and wires - in France, Austria, Greece and China; fasteners - in Spain and Cyprus; steel shapes - in Finland.

The quality management system of Severstal-Metiz has been found to conform to technical specifications of ISO/TS 16949:2009 for manufacture of cold drawn steel and steel shaped profiles. Its production meets all the prescribed requirements of ISO 9001:2008.

Key strategy elements:

• reconstruct and modernize the production facilities;
• maintain competitiveness;
• computerize the works;
• develop related sectors and raw materials sources;
• reduce costs and channel accumulation into investment.

OOO Severstal Pipe Works Sheksna
1, Sheksna Industrial Park, Sheksna District, Vologda Oblast, Russia, 162560
Phone: (81751) 2-57-77/2-57-76
Fax: (81751) 2-57-77/2-57-76
E-mail: tpz@severstal.com
http://sheksna.severstal.com/rus/

OOO Severstal - Pipe Works Sheksna is the first enterprise on the territory of the Sheksna Industrial Park. The enterprise is oriented towards production of round, square and rectangular pipes from 127 to 426 mm in diameter. The annual volume of production is expected to be 250 tons. The total project costs amount to USD 150 mln.