Share Buyout at SeverCorr

23 Apr 2008 14:00

OAO Severstal23 April 2008 SeverStal Completes Management Share Buyout at SeverCorr Executive management transition and production ramp-up progressing well Columbus, Mississippi: Severstal, one of the world's leading metals and miningcompanies, today announced that it has completed the purchase of the outstandingownership shares belonging to the founding management team of SeverCorr, thenext generation steel mill located in Columbus, Miss. Following the transaction,Severstal will hold approximately 85% of SeverCorr. As part of the purchase, John Correnti, Michael Wagner, Richard Painter, EdwardLehner and Wynn Calland will be leaving Severcorr. On January 2, 2008, Severstalappointed James Hrusovsky, CEO, who has been working closely with the foundingmanagement team on a seamless transition. Severstal will also be making additional internal appointments to finalise theSeverCorr executive management team and further ensure business continuity. Aspart of this process, the company today announced the appointment of MarkMiller, Vice President and Director of Projects and Tom Marchak, Vice PresidentSales and Marketing. SeverCorr's operational management team remains in place and departure of thefounding management team will not impact operations. Severcorr continues itssuccessful production ramp-up, having produced approximately 350,000 tons of hotband in 1Q08. The Phase II expansion is on-track to be completed by late 2010and is expected to more than double the mill's output to 3.0 million metrictons. Commenting on the announcement, Hrusovsky said, "Severstal has been a majorsupporter of SeverCorr within the past two years, giving strength to ourdevelopment and further growth. Since taking over as CEO, I have met with manyof the employees. I am impressed with the breadth and depth of talent here andthe superior technology of the facility. I'm also encouraged by the continuedsupport that we've received from our customers and local and state officials." Hrusovsky continued, "John Correnti and the founding management team have beentremendously helpful with the transition and we remain committed to their visionof creating one of the most technologically advanced mills in the steel industryto serve both the customers and community of the fast growing Southern region ofthe U.S." Note to Editors: Mark D. Miller Vice President and Director of Projects Mr. Miller has been General Manager, Engineering and Project Management forSeverstal Technology, LLC since 2005. Mr. Miller came to Severstal after working10 years with Bricmont, Inc. as Project Manager over all projects within theirengineering service group. He was Project Director at D&L, Inc. from 1988 to1995. From 1981 to 1988 Mr. Miller worked as an engineer at Cooper PowerSystems. He began his career in 1979 as an application engineer at DelcoElectronics. Mr. Miller joins the SeverCorr team with a vast amount of projectexperience including design, engineering, construction, procurement, projectscheduling, budgeting, and overall project management. Mr. Miller holds aBachelor of Science Degree, Electrical Engineering from the University ofPittsburgh and is a Registered Professional Engineer. Tom Marchak Vice President Sales & Marketing Tom Marchak entered his first steel mill in April 1984 as a Sales Trainee forBethlehem Steel. Mr. Marchak worked for Bethlehem Steel for a total of 16 years.He also assisted in the building and start up of Chicago Cold Rolled as VP ofCommercial from 1996-1999. In 2003, he joined Kenwal Steel as the VP ofCommercial in Burns Harbor, Indiana. Mr. Marchak joined the SeverCorr team inJune of 2006 as General Manager of Sales. A Pennsylvania native and graduate ofthe University of Scranton in Pennsylvania, Mr. Marchak also graduated fromexecutive courses at the Fuqua School of Business at Duke University and theWharton School at the University of Pennsylvania. About SeverCorr SeverCorr is a unique mill in that it produces high-quality steel by combiningan electric arc furnace steel making process using scrap metal with integratedfinishing plant. It is located near a number of large steel customers, makingthe distribution channels more efficient. SeverCorr complements Severstal'sother U.S. business, SNA, which is based in Dearborn, Michigan and primarilyserves the manufacturing hub of the Midwest U.S. The U.S. operations currently contribute 16% to Severstal's total revenues. Fullconsolidation of SeverCorr financials began in 1Q 2008. About SeverStal: OAO Severstal is one of the world's leading metals and mining companies with alisting on the London Stock Exchange, the Russian Trading System and MICEX.Incorporated in 1993, the company focuses on high value added and unique nicheproducts and has a successful track record of acquiring and integratinghigh-quality assets in North America and Europe. Severstal owns mining assets inRussia, thus securing its supplies of raw materials. In 2007, Severstal produced17.5 million tons of steel. Revenues were $15.2 billion and EBITDA was $3.7billion. EPS was $1.92. For further information: Taylor RaffertyOffice: +1 212 889 4350 Michael HensonMobile: +1 917 902 0767 John DudzinskyMobile: + 1 646 715 2980 This information is provided by RNS The company news service from the London Stock Exchange