- Business
- PJSC Severstal is a vertically integrated steel and mining company headquartered in Cherepovets, Russia, founded in 1955. It operates major metallurgical and mining assets primarily in Russia and has investments in other regions. Severstal produces a wide range of steel products including flat rolled steel, plates, coils, pipes, pig iron, and high value-added steel products targeted at industries such as construction, mechanical engineering, and energy. Its key production asset is the Cherepovets Steel Mill, with an annual steel production capacity of approximately 12 million tonnes. Severstal’s mining division controls large iron ore deposits at the Yakovlevsky and Olkon mines with total reserves exceeding 9 billion tons, supporting its raw material needs.
Recent company developments include a 2025 increase in steel output by 2% and pig iron production by 17% compared to the previous year, despite challenging market conditions including a steep decline in profits and negative cash flow triggered by falling domestic and global steel demand. The company faced a 57% drop in net profit during the first nine months of 2025 due to lower demand and Western sanctions impacting exports. Severstal has also strategically expanded its business portfolio by acquiring Sintez CIP Ltd and Sintez PP Ltd and completed the acquisition of A Group metal trading operations in 2024. Additionally, Severstal transferred a controlling stake in its consulting unit Severstal-Center for Unified Service LLC to Process Lab.
Severstal serves diverse end-markets with its comprehensive product range including rolled steel products for machine-building; metal structures for industrial and civil construction; prefabricated houses and commercial buildings made of light steel thin-walled constructions (LSTC); and products engineered for logistics hubs, warehouses, and light industrial complexes. The company focuses on high-strength steels and advanced construction solutions with improvements in thermal and sound insulation for residential projects. Severstal also continues to maintain a significant presence in the North American market through prior acquisitions such as Esmark, enhancing its position as an integrated steel producer.
This Russian steel and mining leader operates 25 enterprises across seven Russian regions and exports to global markets despite recent geopolitical challenges. Severstal balances its vertically integrated chain—from raw material extraction to end-product manufacturing—with efforts to innovate in construction steel solutions and maintain a broad product offering tailored to complex industrial and infrastructure needs.
Overall, Severstal combines its core metallurgy and mining operations with acquisitions and strategic divestments to adapt to market pressures, focusing on operational efficiency, product diversification, and expansion of its service and trading businesses into new segments and geographic areas to sustain its position as a major player in the steel industry.