SVST.L Regulatory News (SVST)

20 Nov 2006 07:50

OAO Severstal20 November 2006 SEVERSTAL Mira str. 30, RU-162600, Cherepovets, Vologda region, RussiaPhone: +7 (8202) 53 14 18, fax: +7 (8202) 53 12 56, www.severstal.com For Immediate Release 19 November 2006 SEVERSTAL COMPLETES SELECTION OF NON-EXECUTIVE DIRECTORS NOMINATION OF NON-EXECUTIVE CHAIRMAN AND THREE NON-EXECUTIVE DIRECTORS OAO Severstal ("Severstal") today announces the nominations of Chris Clark asIndependent Director and Non-executive Chairman of the Board, Martin Angle asIndependent Director and Chairman of the Audit Committee and Ron Freeman and DrPeter Kraljic as Independent Directors, subject to their appointment to theBoard by Severstal's shareholders at an EGM in December 2006. Following thenomination of Rolf Stomberg as Senior Independent Director, announced on 2November 2006, these are the remaining four Non-Executive Director appointmentsto be made as part of Severstal's new corporate governance arrangements designedto comply with the key elements of the UK's corporate governance standards. Once appointed, Severstal will have a 10 person Board comprising five ExecutiveDirectors and five Non-Executive Directors including Chris Clark asNon-Executive Chairman. Chris Clark is Chairman of Associated British Ports and Chairman of Urenco Ltdand Wagon Plc. He spent his executive career with Johnson Matthey plc, the FTSE100 specialty chemicals and precious metals group becoming Chief Executive in1998. Martin Angle has been an Operational Managing Director at Terra Firma CapitalPartners (previously Nomura International, Principal Finance Group) since 2001and is a former group Finance Director of TI Group plc. Ronald Freeman is a board member, advisory partner and shareholder of investmentbank and securities dealer, Troika Dialog, (Moscow) and was head of the BankingDepartment of the European Bank for Reconstruction and Development (EBRD) fortwo consecutive terms. Dr Peter Kraljic is currently a Director Emeritus at McKinsey following his 32year career at the company and has held a number of senior positions until hisretirement in 2002. Comment Commenting on today's announcement, Alexey Mordashov, CEO of Severstal'smanagement company, said: "We have now completed the selection of all five of our Non-Executive Directorswell before the year end, as planned. I am delighted to welcome the newadditions to the Board and believe that our investors will recognise theexceptional calibre and reputation of the team we have assembled. I am confidentthat they will contribute significantly to the success of our growth strategyand ensure that our governance is maintained to the highest internationalstandards." Chris Clark said; "Severstal is an excellent company with great growth prospects which hasundergone significant changes over the last year. I believe that the new Boardrepresents one of the strongest teams in the industry and I look forward toplaying my role as the company pursues opportunities for growth and valuecreation." - Ends - Enquiries: Severstal +7 495 540 7766 Dmitry Druzhinin, Investor Relations Olga Antonova, Public Relations Citigate Dewe Rogerson +44 20 7216 4729 Andrew Hey Marina Zakharova +44 20 7282 1079 NOTES TO EDITORS Chris Clark Chris Clark, 64, is a leading industrialist and businessman and brings extensivebusiness knowledge to the Board. He had a 40 year career at Johnson Matthey plc,the specialty chemicals and precious metals group, becoming Chief Executive in1998. He led the Group into the FTSE 100 in 2002. Since his retirement in 2004, he has assumed a number of Non-Executivepositions. Currently, he chairs Associated British Ports; Urenco Limited (theleading international supplier of enriched uranium to the power generatingindustry); and Wagon plc (the European manufacturer of metal components for theautomobile industry). Martin Angle Martin Angle, 56, has been an Operational Managing Director at Terra FirmaCapital Partners (previously Nomura International, Principal Finance Group)since 2001. Prior to that Mr. Angle was group Finance Director at TI Group plc.He has also held a number of senior positions at Kleinwort Benson Ltd, includingMember of the Board at Dresdner Kleinwort Benson North America Inc and was alsoa Head of UK M&A at investment bank Morgan Stanley. Ronald Freeman Ronald Freeman, 67, is a board member and advisory partner/shareholder ofinvestment bank and securities dealer, Troika Dialog, a supervisory board andaudit committee member of pharmaceutical manufacturer Pliva, an internationaladvisory board member to Unicredito Bank and senior advisor to the DoughtyHanson European real estate fund. He is also a member of the InternationalAdvisory Committee of Columbia Law School and the Development Committee ofMansfield College, Oxford. He was appointed head of the Banking Department of the European Bank forReconstruction and Development (EBRD) from the EBRD's inception in 1991 until1997 with responsibility for 2 billion per year of mainly private sector debtand equity financing in the Bank's twenty three countries of operations. From1973 to 1991 and from 1997 to 2000 he was an investment banker with Citigroup,latterly as co-head of European Investment Banking until his retirement in 2000. Dr Peter Kraljic Peter Kraljic, 68, is a Director Emeritus at McKinsey, where he spent 32 yearsand held a number of senior positions until his retirement in 2002. Focusedmainly on industrial clients in sectors such as chemicals / pharmaceuticals,automotive assembly machinery and steel / aluminum and related service sectors,he was also a member of McKinsey's Shareholders, Firm Development and PersonnelDevelopment Committees and has managed the company's activities in France as aGeneral Director. He is a published author of a number of scientific and business articles inpublications such as Columbia Journal of Business, Harvard Business Review,Manager Magazine and Le Figaro Economic and he has lately been leading specialprojects aimed at economic growth and job creation in Germany and Brazil.. Severstal's business: Severstal's vertical integration, focus on high value-added products,substantial modernisation of operations and recent geographic expansion throughattractive acquisitions have enabled it to leverage cost synergies and generatestronger cash flows and earnings. Severstal seeks to actively enhance itsproduct portfolio with new products to meet customer demand for high qualityflat products in Russia and the United States, particularly in the automotiveindustry, niche products in Russia, including large diameter pipes and wiredrawn products, and specialty and high value products in Europe, includingspecial bars and wire rods produced by Lucchini. This information is provided by RNS The company news service from the London Stock Exchange