OAO Severstal, the leading vertically integrated steel and steel-related mining companies, announces several changes to its management and organisational structure aimed at enhancing production efficiency, improving corporate governance and reducing costs.
Vadim Larin, formerly CEO of Severstal Resources, is appointed First Deputy CEO and COO. Alexander Grubman will step down as CEO of the Severstal Russian Steel division. Sergey Toropov, who previously held of the position of CEO of OJSC TKZ Krasny Kotelshchik (OJSC Power Machines) and has been working at the Cherepovets Steel Mill for several years before joining Power Machines, will be the new CEO of Severstal Russian Steel. The Severstal Russian Steel division and the Severstal International division as well as OAO Severstal-metiz, OAO Vorkuta Ugol, OAO Olcon, OAO Karelskiy Okatysh and PBS Coals will report directly to Larin. OAO Severstal-metiz will be separated from the Russian Steel division.
Further changes in the corporate structure including the reduction of levels of management as well as cost-cutting programs will be carried out. The position of vice president of Corporate Strategy will no longer exist, and Thomas Verazsto, who previously held this position, will now be an advisor to the CEO. Alexey Mordashov, CEO of Severstal, said: “These changes will optimise our organisational structure and enhance the efficiency of our head office. Severstal’s head office employees are welcome to be actively involved in this process and are encouraged to forward proposals on restructuring and cost reduction to the heads of their divisions.”