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29 Jan 2015 09:40
Severstal announces 2015 capital investment program
January 29, 2015. Moscow.- PAO "Severstal" ("Severstal" or "the Company"), one of the world's leading vertically integrated steel and steel-related mining companies, today announces details of its 2015 capital investment program to support the delivery of Severstal's strategy and long-term competitiveness.
Severstal plans to invest approximately RUR 30 billion across the business in 2015. This investment will primarily focus on developing key areas of the Company's strategy including increased production of high-value added products; enhancement of customer care, and; continuous improvement to health and safety standards. At the same time, management will remain focused on the reduction of operational and administrative costs.
Severstal Russian Steel
Planned investment across the Severstal Russian Steel division in 2015 is approximately RUR 16 billion. RUR 8 billion of this will be invested in development projects including the construction of a new coating line and the revamping of the four-stand continuous tandem cold rolling mill 1700, both at the Cherepovets Steel Mill.
RUR 8 billion will be invested in a combination of maintenance and environmental improvement projects.
Severstal Resources
Planned investment across the Severstal Resources division in 2015 is approximately RUR 13 billion. RUR 7 billion of this will be invested in development projects including the completion of the construction of an incline shaft at Zapolyarnaya and, at Karelsky Okatysh, the construction of a new water rotation unit and improvements to the stripping works.
In 2015, RUR 6 billion will be invested in the maintenance of Severstal's coal and iron or operations as well as health and safety improvement projects.
Alexey Kulichenko, CFO of Severstal, commented: "Severstal maintains a prudent and balanced approach to capital expenditure that is flexible to market conditions. The 2015 investment program will enable Severstal to continue to deliver against its strategic objectives by further enhancing efficiency and continuing to generate healthy free cash flow. At the same time, we remain vigorously focused on developing our market-leading product and service standards."
The planned investments are preliminary estimates and amounts could be adjusted dependent on FX changes. The majority of the Company's expenditure in 2015 will be undertaken in RUB.
Contacts |
Investor Relations
Vladimir Zaluzhsky
T: +7 (495) 926-77-66 ext. 6375
vladimir.zaluzhsky@severstal.com
Public Relations
Elena Kovaleva
T: +7 (495) 926-77-66 ext. 6447
elena.kovaleva@severstal.com
Severstal's financial communications agent - Hudson Sandler
Andrew Hayes / Maria Ignatova / Alex Brennan
T: +44 (0) 20 7796 4133
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PАО Severstal is one of the world's leading vertically integrated steel and steel related mining companies, with assets in Russia, Ukraine, Latvia, Poland, Italy and Liberia. Severstal is listed on the Moscow Stock Exchange with GDRs being traded on the London Stock Exchange. Severstal reported revenue of $9,434 million* and EBITDA of $1, 818 million* in 2013. Severstal's crude steel production in 2014 reached 11.3 million tonnes. www.severstal.com
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