Severstal | 14 April 2008 г. | 14:35
Severstal announces reorganization to facilitate further growth
JSC Severstal today announced that it is reorganising its businesses into three principal divisions: Severstal Russian Steel, Severstal Resourses and Severstal International.
The new structure, taking effect in April, will reduce the number of reporting lines between individual operations and senior management, ensuring greater operating efficiency and capitalizing on Severstal’s international diversity by providing for the continued growth of the global business.
This development marks a logical next step in Severstal’s corporate maturation following the Company’s 2006 listing on the London Stock Exchange and the vertical integration process that consolidated its mining and metallurgical assets in Russia and Europe. The organizational realignment will also reinforce the 2006 adoption of Severstal’s Code of Corporate Governance by streamlining the reporting structure between individual operations and the Company’s senior management.
Alexey Mordashov, Severstal CEO, said: “This restructuring is a logical next step in Severstal’s development, reflecting our already strong position as an integrated metals and mining business with a growing international focus. The simplified, 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 – оne 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 – сomprising 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 areas will be established.
· 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 2007 divisional structure.
Source: Metal Supply and Sales
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