Severstal 2021 capital investment programme (1165695)
February 04 2021 - 2:04AM
UK Regulatory
PAO Severstal (SVST)
Severstal 2021 capital investment programme
04-Feb-2021 / 10:03 MSK
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014
(MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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Severstal announces 2021 capital investment programme
February 4, 2021, Moscow - PAO Severstal ("Severstal"; "the Company"), one of the world's leading vertically integrated
steel and steel-related mining companies, today announces its capital investment programme for 2021.
Severstal plans to invest approximately USD1.35 billion in 2021, focusing on a number of major projects in its Russian
Steel and Resources divisions, as well as on key focus areas of the Company's strategy, namely, excellent customer
experience, cost leadership and new opportunities.
In 2021, Severstal will invest USD453 million in the maintenance of its existing facilities and USD42 mln in industrial
safety system improvements, labour protection and environmental projects.
USD124 million will be allocated towards investments in IT and digital projects, including the ongoing transition of the
Company's divisions to a new generation of the SAP ERP system - the SAP S / 4 HANA solution, developing e-commerce, the
automation of production, supply chain management and the implementation of digital tools.
Russian Steel division
Investments in Severstal's Russian Steel division in 2021 will amount to approximately USD785 million, of which USD469
million will be directed to development projects. The division's largest projects are the second stage of the
construction of coke oven battery No. 11 (first commissioned at the end of 2020, with the full capacity expected to be
completed in 2022), bringing blast furnace No. 3 to design capacity, and also investment in the long-range mill and the
heating furnaces.
Resources division
Investments in the Company's resources enterprises in 2021 will amount to approximately USD524 million, USD267 million of
which will be used to develop production. One of the most important investment areas for the Company this year will be
the main phase of construction of the Cycle-flow technology complex at Karelsky Okatysh. CPT is a modern technology
used for transporting rock mass by dump truck, which significantly reduces emissions from the operation of quarry
equipment. Severstal will continue its programme to increase production at the Yakovlevsky mine, which will increase
the Company's iron ore production to 5 million tons by 2023. Other investment priorities for Severstal's resources
assets include increasing production volumes at Vorkutaugol and the development of the Pechegubsky field via the Olkon
mine.
Alexey Kulichenko, CFO of Severstal, commented:
"Severstal continues to implement its large-scale transformation programme, which has enabled us to maintain our global
efficiency leadership despite the crisis in 2020. As usual, in 2021 the majority of investment will be focused on
development projects that will help us to achieve a significant, long-term advantage over our peers in the cost of
basic products, to provide customers with unique solutions and products of guaranteed high quality, and to increase our
steel production volumes and strengthen Severstal's vertical integration. Blast furnace No. 3 and coke oven No. 11 will
have a significant impact on reducing the cost of steel production starting this year, and this will help to create
additional value for shareholders. Total investments in 2021 will be comparable to investments in 2020."
All of these amounts are subject to adjustments dependent on FX changes. The majority of the Company's expenditure in
2021 will be in rubles.
For further information, please contact:
Severstal Investor Relations
Evgeny Belov
T: +7 (495) 926-77-66
evgenii.belov@severstal.com
Severstal Public Relations
Anastasia Mishanina
T: +7 (495) 926-77-66
anastasia.mishanina@severstal.com
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P?? Severstal is one of the world's leading vertically integrated steel and steel related mining companies, with assets
in Russia, Latvia and Poland. Severstal is listed on MOEX and the company's GDRs are traded on the LSE. Severstal
reported revenue of USD6,870 million and EBITDA of USD2,422 million in 2020. Severstal's crude steel production in 2020
reached 11.3 million tonnes. www.severstal.com
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ISIN: US8181503025
Category Code: UPD
TIDM: SVST
LEI Code: 213800OKDPTV6K4ONO53
Sequence No.: 92883
EQS News ID: 1165695
End of Announcement EQS News Service
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