OAO Severstal Announces Management and Organizational Changes
07/17/2013 - OAO Severstal announced changes to its management and organizational structure in order to enhance production efficiency, improve corporate governance and reduce costs.
Vadim Larin, formerly CEO of Severstal Resources, has been appointed first deputy CEO and chief operating officer.
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, is appointed as 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 Mr. 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.
In line with the company’s focus on organic growth, the position of vice president of corporate strategy will no longer exist and Thomas Verazsto, who previously held this position, has been appointed an advisor to the CEO.
Alexey Mordashov, CEO of Severstal, said, “The company continues to actively work to increase efficiency, reduce costs in order to strengthen the competitiveness of Severstal. These changes will optimize our organizational 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.”
