History of Severstal Group - company profile.
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History of Severstal Group


Severstal is a leading vertically integrated steel and steel related mining company. Producing ~11 million tonnes of crude steel, Severstal ranked as the #33 steelmaker in the world in 2015.

The timeline below covers the history of the firm.

  • 1930: Concept emerges for building steel plant in NW Russia.
  • 1939: Construction of the works postponed - World War II.
  • 1947: Construction of a steel fabrication shop commences.
  • 1954: In-house power generation plant commences operation.
  • 1955: Production of cast iron commences blast furnace #1.
  • 1956: Production start-up of Cherepovets coke plant.
  • 1956: Commissioning of blast furnace #2.
  • 1958: First steel ingot is cast.
  • 1959: Blooming mill commissioned in January 1959.
  • 1960: ChMK commissions No 1 hot strip mill [supplied by NKMZ].
  • 1963: ChMK commissions No 1 14-stand light long product mill.
  • 1963: ChMK commissions No 1 tandem 4-high cold rolling mill.
  • 1969: ChMK begins operation of an electric arc furnace.
  • 1975: Commissioning of Mill 2000 continuous hot-rolling mill.
  • 1993: State Enterprise ChMK registered as Severstal Joint Stock Co.
  • 1994: Acquisition of the Karelskiy Okatysh ore mines.
  • 1995: Acquisition of Olenegorskiy mining & processing plant.
  • 1996: Alexey Mordashov appointed Severstal Group CEO.
  • 2001: Severstal environment management system certified.
  • 2003: Acquisition of coal mining assets in Komi Republic.
  • 2003: Severstal moves to adoption of IAS accounting standards.
  • 2004: Purchase of steelmaking and finishing assets of Rouge Steel.
  • 2005: Takes 62% controlling interest in Italian firm Lucchini.
  • 2005: Wheeling-Pitts JV for 1 mt/yr coke plant at Follansbee, WV.
  • 2005: Additional 7.9% equity in Lucchini purchased for ~€ 61m.
  • 2005: Formation of Severstal Columbus, also known as Severcorr.
  • 2006: Commissioning of new ERW pipe facility at Izhorsk.
  • 2006: Acquires 60% ownership in Dneprometiz for US$ 33 million.
  • 2006: Severstal shares listed on the London Stock Exchange.
  • 2006: Severstal - Arcelor galvanised sheet jv [Severgal] commences.
  • 2006: Purchase of 100% of UK wire firm CWL for GBP 14.2m.
  • 2006: Purchase finalised of controlling stake in Severstal Mash.
  • 2008: Severstal Internatnl formed from N Am & European assets.
  • 2009: BF#3 making 1.6mt pig iron replaced with 1.7mt BF#3 rebuild.
  • 2010: Launch of second zinc coating line at Cherepovets Steel Mill.
  • 2010: MoU signed with NMDC for greenfield 3mt Karnataka works.
  • 2010: Steel stamping and SSC JVs set up in Grabtsevo.
  • 2011: Investment in new colour-coating line in Cherepovets.
  • 2011: Sale of Warren, Wheeling & Sparrows Point assets to Renco.
  • 2012: New Air Liquide air separation unit at Cherepovets site.
  • 2012: Pre-feasibility completed - Putu iron ore reserves in Liberia.
  • 2012: Scoping study completed - Amapa iron ore mine, Brazil.
  • 2012: New coal face commissioned - Komsomolskaya Mine.
  • 2013: New EAF mini-mill in Balakovo for construction sector rebar.
  • 2013: Severstal cancels NMDC jv for new steel plant in India.
  • 2013: Severstal completes sale of StalTrans to Freight One.
  • 2014: Sales of North American assets to AK Steel/Steel Dynamics.
  • 2015: Commissioning expected of BOF shop secondary dedusting.
  • 2015: Announces that CEO Mordashov is to step down.
  • 2016: Putu Mining subsidiary shuts down its activities in Liberia.
  • 2016: Restarts modernised Cherepovets 4-stand cold rolling mill.

Notes
  • 1930: Steel plant concept emerged from the discovery of Kola Peninsula iron ore reserves and Pechora River coal deposits. The chosen site for the new plant was Cherepovets, as this was equidistant from Moscow and St. Petersburg.
  • 1955: With commencement of hot metal production, August 1955 is considered to be the founding date of the Cherepovets Steel Mill.
  • 1959: By the late 1950s, Cherepovets steel plant had become a fully integrated iron and steel works with electrical power generation, blast furnaces, converters, an ingot shop, blooming and rolling mills fully operational.
  • 1963: ChMK denotes Cherepovets Metallurgical Kombinat.
  • 2003: Severstal purchased the Vorkutaugol coal mines and took over ownership of the coking coal mines of Kuzbassugol [after splitting up the former mining assets of MDM (in which Severstal had acquired a half share in 2001) into coking and steam coal mines respectively].
  • 2004: Rouge Steel was the former steel plant of the Ford Motor Company in Dearborn Michigan – which had been in Chapter 11 bankruptcy. Severstal paid ~$260 million in cash and assumed ~$113 million of liabilities.
  • 2005: Prior to the acquisition by Severstal of a majority stake, Lucchini had been active in Central Europe and had acquired and modernised the Warszawa minimill, the first major steel investment in a former Comecon country by an EU producer. In 2004 however Lucchini was having problems repaying the bond with which it had financed its investment in Huta Warszawa, and sold the Warszawa mill to Arcelor.
  • 2005: Severstal Columbus LLC [formerly known as SeverCorr Corporation], was founded in April 2005 by a team of steel executives including former Nucor CEO John Correnti. The SeverCorr facilities included an EAF steelmaking plant, with a state-of-the-art CSP plant comprising a thin slab caster and a six-stand hot rolling mill.
  • 2006: Severstal Mash owns and operates engineering, machine-building and repair and maintenance companies that serve the Russian steel-making sector. Operations include SSM-Tyazhmash SVS, OAO Domnaremont and OAO Metallurgremont.
  • 2006: Dneprometiz produces steel wire and other metalware products at production facilities located in Ukraine.
  • 2006: CWL also known as Carrington Wire Limited. In 2010, Severstal decided that CWL was no longer viable and closed the business down.
  • 2008: Severstal structure modified with the creation of three divisions: Severstal Russian Steel, Severstal Resources & Severstal International.
  • 2012: Putu iron ore reserves in south east Liberia are thought to comprise ~3.2 billion tonnes of hematite / magnetite with 34% Fe content. The reserves are 61.5% Severstal-owned and 38.5% Affero-owned.
  • 2012: Amapa iron ore reserves are thought to comprise 0.5-1.5 billion tonnes of magnetite with ~40% Fe content. The reserves are 25% Severstal-owned and 75% SPG Mineracao-owned.
  • 2012: Battle over control erupts with India's NMDC for proposed greenfield steel plant in Karnataka.
  • 2013: Severstal joint venture with NMDC [India's largest iron-ore producer] for new Karnataka steel mill cancelled August 2013 because of 'difficult business conditions'.
  • 2013: September 2013 sale of StalTrans involved the transfer to Freight One of Severstal's rail freight assets and the transfer of freight transport assets from Severstal's key mining subsidiaries Vorkutaugol and Karelskiy Okatysh. The total consideration for this transaction was US $160m.
  • 2014: July 2014 announcement made of sale of the Dearborn plant to AK Steel and of Columbus to Indiana-based Steel Dynamics.
  • 2015: Severstal announced in April 2015 that Chief Executive Alexey Mordashov - who joined Severstal in 1988 - would step down from his position and seek election as Chairman of the company's board of directors.
  • 2016: Putu Iron Ore Mining Co Inc was a 100%-owned subsidiary of Severstal which was granted a license for mining iron ore in Liberia's Putu Mountain Range in mid-2014. Putu's closure in early 2016 is understood to have been caused by a number of factors, including the low level of iron ore prices.
  • 2016: Modernisation of Cherepovets cold rolling mill - a Ruble 3 billion investment project - also involved a 200kt capacity expansion of this facility.


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