Severstal (SVST)

DailyFinance  Apr 4  Comment 
DEARBORN, MI--(Marketwired - April 04, 2014) - Severstal North America, a leading steel producer in the United States and a subsidiary of Severstal, a global steel and mining company, announced the creation of a community advisory council in...
Bloomberg  Mar 22  Comment 
A former executive of Russian steelmaker OAO Severstal was charged in the U.S. with hiding as much as $7.5 million from tax authorities in secret Swiss bank accounts held at UBS AG.
Automotive World  Feb 28  Comment 
Stricter emissions standards and demands for improved fuel efficiency have resulted in a reduction in vehicle weight. Different car manufacturers have opted to work with different materials in order to achieve this weight reduction…. Members...
Reuters  Feb 27  Comment 
Severstal, Russia's second-biggest steel producer, posted a fourth-quarter net loss of $74 million on Thursday due to an asset impairment of $349 million and forex losses of $83 million.     
DailyFinance  Feb 3  Comment 
DEARBORN, MI--(Marketwired - February 03, 2014) - Severstal North America, a leading steel producer in the U.S., announces the appointment of Dr. Prabhat (PK) Rastogi to General Manager, Business Development, Strategy and Innovation for key...
DailyFinance  Jan 30  Comment 
DEARBORN, MI--(Marketwired - January 30, 2014) - Severstal North America, one of the leading steel producers in the U.S. and a subsidiary of Severstal, one of the world's leading steel and mining companies, today celebrates its ten-year...
DailyFinance  Dec 19  Comment 
DEARBORN, MI--(Marketwired - December 19, 2013) - Severstal North America, a leading steel producer in the U.S., has appointed Sanjeev Badola, Director, Scrap and Metallics Procurement, based in Dearborn, Mich. effective January 1, 2014. In...
DailyFinance  Dec 16  Comment 
DEARBORN, MI--(Marketwired - December 16, 2013) - Effective immediately, Severstal North America, a leading steel producer in the United States and a subsidiary of Severstal, a global steel and mining company, has named Mr. William S. Noakes, Jr.,...
Financial Times  Nov 14  Comment 
Russian group calls for companies and states to agree massive restructuring of global steel industry in order dramatically to cut output and capacity




 
TOP CONTRIBUTORS

Business Overview

Severstal is one the world's top vertically integrated steel producers[1]. In 2010 the company produced close to 17 million metric tonnes of steel, placing it amongst the top ten steelmakers in the world.

The company is run by Alexey Mordashov, a Russian steel industry oligarch who is also a main shareholder.

Business and Financial Metrics

Consolidated Severstal Group revenue in 2010 was $13.5 billion. EBITDA for this period was $3.3 billion[2].

Business Segments

The Severstal Group operates in three main segments. These are:

  • The Russian Steel Division, which is the biggest division accounting for some 65% of sales. It mainly comprises the Cherepovets steel plant that produces ~9 million tonnes of steel per year, the Kolpino plate mill [850 kt / year of heavy steel plate] and the Izhora Pipe Mill [~600 kt / year of large diameter pipe].
  • The Resources Division. This produces coking coal in Russia of ~ 8 mt / year, plus iron ore pellets and concentrate amounting to Russian output of some 14 million tonnes of iron ore per year. PBS Coals in Pennsylvania (a leading provider of ~1.5 mt / year of metallurgical coal and of ~1 mt/year of thermal coal - located by the U.S. east coast) is within this division. Gold mining assets in Russia, Kazakhstan and in West Africa [with production of ~ 590 k oz gold in 2010] are also within the Resources division.
  • The International Division. Following the March 2011 sale by Severstal North America of steel making facilities at Warren, OH, Wheeling, WV and Sparrows Point, MD to the Renco Group, the International Division now mainly comprises US assets that include the 2.3 million tonne crude steel per year flat rolled steel plant at Dearborn, MI [auto cold rolled steels] and the 1.5 million tonne per year crude steel per year Columbus steel plant in Mississippi (formerly known as Severcorr).

Trends and Forces

Some of the trends impacting the Company include:

  • Internationalization of the production base, which is pushing many large steel companies to new geographies in order to match the geographic breadth of key clients (e.g. in the automotive sector).
  • Domestically, the evolution of the steel distribution network - with emergence of modern steel service centers and increasingly more sophisticated steel stockholding operations in Russia - which represents both a threat and an opportunity to Severstal.
    • increasing environmental and emissions costs in regions such as the European Union, which is pushing steelmaking into countries such as Russia
    • the desire for adding value through hot and cold processing of steel, which is pushing rolling operations towards industrialised markets.

Competition

Within its core business of steelmaking, it should be noted that Severstal has a major competitive advantage from being almost fully self-sufficient in supply of key steelmaking raw materials that include iron ore and coking coal. This strong vertical integration gives Severstal a marked cost advantage in the production of steel. As a result, Severstal is ranked as being amongst the lowest cost producers of hot rolled steel coil, ranking in terms of cost performance with steelmakers in the top decile on the world cost curve for hot rolled coil.

Important competitors include EvrazHolding in Russia, the Novolipetsk Metallurgical Kombinat (NLMK) in Russia, the Magnitogorsk Iron and Steel Works in Russia and ArcelorMittal's Termitau production plant in Kazakhstan.

References

  1. History of Severstal
  2. Severstal Corporate Presentation, Page 3 "Severstal Overview", June 2011
  3. [NLMK Presentation, 'Europe and the CIS: What does the future Hold?' SBB European Steel Conference, Barcelona, May 2011]
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki