It took the small company Evrazmetall just a quarter of a century to become one of the world's largest vertically integrated metallurgical and mining companies.
She does:
- mining and beneficiation of iron ore;
- production of steel products;
- coal mining;
- production of vanadium and its products;
- trade and logistics.
What was the beginning
The history of EVRAZ dates back to 1992, when a small company, Evrazmetall, was formed, specializing in the trade of metal products.
The new enterprise constantly expanded its scope of activities and turnover, until in 1995 it became the EAM Group, uniting a number of mining, coal and steel companies.
The company even entered into a strategic partnership agreement with the Duferco company, becoming the owner of a controlling stake in the Nizhny Tagil Metallurgical Plant (NTMK).
EAM became the basis for the formation in 1998 of the first domestic vertically integrated mining and metallurgical complex, EvrazHolding. Its goal was to exercise control over the entire production chain, starting with the extraction of raw materials and coal and ending with sales finished products. And with the annexation, on the initiative of the authorities of the Kemerovo region, of two who were in in crisis large metallurgical plants, West Siberian (ZSMK) and Novokuznetsk (NKMK), EvrazHolding LLC - the main executive body of NTMK, ZSMK and NKMK, Vysokogorsky and Kachkanarsky GOKs, Evrazruda and seaport Finds.
The result did not slow down, and with the modernization of production, the subsequent increase in the output of main types of products and the increase in profits from their sales, the situation is gradually beginning to stabilize.
By 2005, Evraz Group S.A. (Evraz Group), having registered in Luxembourg, acquired the status of a public company, and its shares (8.3%, and then another 6% at the beginning of 2006) in the form of global depositary receipts were listed on the London Stock Exchange.
Mergers and acquisitions
The company continued to expand. In its structure:
- "Mine 12";
- Vitkovice Steel, a sheet steel manufacturer from the Czech Republic;
- rolling mill "Palini and Bertoli" in Italy;
- "Dry beam";
- Oregon Steel Mills;
- Dneprodzerzhinsk Coke and Chemical Plant, Bagleykoks;
- Dnepropetrovsk Metallurgical Plant named after. Petrovsky;
- "Dneprokoks"
- OJSC Yuzhkuzbassugol (50% shares);
- share in OJSC Raspadskaya;
- Stratigic Minerals Corporation (Stratcore) is a manufacturer of vanadium and titanium alloys and chemicals headquartered in the USA (73% shares);
- "Delong" (China) - 10% of 51 under the agreement;
- Highveld Steel and Vanadium Corporation, South Africa, (54.1% shares).
All this contributed to the expansion of the company's product line through products with high added value, allowed it to enter the EU markets, ensured a significant presence in the plate and pipe business in the USA and Canada and recognition as the world's leading rail manufacturer.
For the company this time became “golden”. Evraz was continuously growing, rapidly becoming a leader, paying its shareholders huge amounts of dividends amounting to billions of dollars. And it was not surprising that record number billionaires paid attention to him:
- Roman Abramovich - the stake acquired by his structures in 2006 is considered the largest investment ever made;
- Evgeny Shvidler - US citizen;
- Alexander Abramov and Alexander Frolov - founders of EVRAZ;
- Gennady Kozovoy and Alexander Vagin - former owners of the Raspadskaya coal mine;
- Igor Kolomoisky.
However, the aggressive purchasing strategy subsequently caused many problems, one of which was the significant debt accumulated by the company.
Evraz Group S.A. Today
Evraz remains among the largest metallurgical and mining companies in the world. It is one of the 15 leaders in the global steel industry, the largest Russian supplier of coke-chemical and refractory products, hardware, and rolled metal products for various purposes and goods consumer consumption.
Evraz shares are traded on the London Stock Exchange, and its enterprises are scattered throughout the world: the USA, Canada, the Czech Republic, Italy, Kazakhstan, South Africa and Ukraine.
The global crisis of 2008 became a test for Evraz. Unprecedented rise in steel prices and serious problems steel consumers resulted in a drop in demand, and with it a collapse in prices, in some markets by half. The company suffers direct losses, and its capitalization by mid-2013 reaches a historical minimum, which is even lower than at the height of the crisis.
the main task during this period - to maintain production capacity, labor productivity and product quality, the number of personnel (we will have to partially reduce workers who have reached retirement age) in order to be able to increase volumes and modernize production in the near future. And to reduce losses, Evraz is getting rid of ineffective secondary assets.
When did the time come for Evraz? hard times(prices on the steel market continue to fall, demand growth has not yet been observed), a rare shareholder considers his investment successful, because there is no confidence that the company will be able to pay its debts without delay.
At the same time, safety is the number one priority for the company. It continues to implement safe operating procedures in its operations, focusing on its steel product range and premium coking coal sales.
NGOs for the development of the steel construction market in Russia
The company initiated the association of leading manufacturers of rolled metal products, designers, and manufacturers of metal structures with the aim of developing steel construction in Russia and the EU countries.
The initiative was supported. For metallurgists, the construction industry is one of the most important drivers of metal consumption, and the benefits are undoubted in the displacement of concrete and the development of construction on steel frames.
In October, the NGO Association “Association of Business Participants for the Development of Steel Construction” began its work (you can find out more about which organizations are classified as non-profit Russian legislation). The new association will have to influence the main barriers that are holding back the process:
- regulatory and technical base;
- established design practice;
- skeptical attitude of investors towards the use of steel structures in the construction of residential, commercial and social facilities;
- low qualifications of builders;
- availability of rolled metal;
- operation and fire protection of steel structures.
The non-profit association sets itself the task of changing the stereotypes of thinking of participants in the construction market - designers, architects, investors, developers. They must understand that the future lies in metal structures.
The NPO hopes to attract new members to its ranks through participation in various international exhibitions- CitiExpo, KazBuild, Metal-Expo.
“Members of the association hope to integrate all participants in the development cycle in the construction of housing on a metal frame basis - scientists, architects, designers, developers of technical standards, construction industry enterprises, investors, customers and contractors - into a single technological chain” (according to RBC pages).
Development of EVRAZ segments
Steel production, iron ore and coal mining are among the company's main activities. A third of its steel-rolling capacities are located far beyond the borders of Russia. In addition, Evraz is also considered in the global vanadium market.
Steel segment
This company's activities are aimed at developing the production of steel products. Moreover, the company’s capacities and technologies allow export sales of finished products and semi-finished products. The company's iron ore assets cover 85% of the raw material requirements of its metallurgical plants.
Enterprises on the North American continent specialize for the most part in the production of high-margin steel products (rails, pipes large diameter and oil field pipes).
Due to a drop in prices for the company’s construction products by almost a third in 2015 alone, the staff of the largest steel product manufacturer EVRAZ West Siberian Metallurgical Plant had to be transferred to a 4-day shift. working week.
Despite the difficulties, the cost reduction program and the presence of its own base of iron ore and coal allowed the company to secure a 14% share of all manufactured fittings and 72% of rails in the Russian market for the production of long steel products based on the results of 2016, and also remain the largest manufacturer large diameter pipes and rails.
Rice. 5. Steel production at EVRAZ, thousand tons ( metric tons)
Source: official website of the company
Among the largest consumers of EVRAZ is JSC Russian Railways.
“The fall in demand for ferrous metals abroad forced Ural producers to target Russian Railways, shipbuilders and the auto industry. Although the devaluation of the ruble is no longer able to protect them from losses, they continue to invest in promising investment projects.”
Railways have significantly increased their purchases of rails. This applies not only to Russian Railways, but also to consumers from Europe, India and the Middle East. The company focused its efforts on developing new products and was the first in Russia to master the production of 100-meter rails according to European standards.
Increasing productivity, optimizing labor By implementing energy efficiency initiatives, the company has reduced the cost of producing semi-finished steel products to $185 per ton.
But it is not only the desire to maintain the competitiveness of its assets that drives the company. The stable production of pig iron should be ensured by blast furnace No. 7, the construction project of which has already been launched, and the shutdown of the sixth one will not negatively affect this process.
Coal segment
EVRAZ is not only the largest, but also one of the lowest-cost producers of coking coal in Russia. The coal business supplies its own metallurgical plants and supplies coking coal to the most important Russian coke producers.
The company continues to invest in maintaining current production volumes. This allowed it to consolidate its leadership position in the Russian coal market. The share of high-alloy hard and semi-hard coking coals reached 33 and 51%, respectively.
And effective optimization of mining processes allowed the group to increase coking coal production.
One of the largest domestic metallurgical and mining companies, Evraz Plc, is registered in the UK. Since 2005, its shares have been traded in London. The history of Evraz began in 1992. Then MIPT graduate Alexander Abramov, together with his fellow students, organized and headed Evrazmetall LLP. The company traded metals, coal and ore, while simultaneously buying shares in metallurgical plants, coal mines and mining and processing plants.
In 1998, the assets were merged into Evrazholding. By that time, Abramov had a junior partner - also a graduate of the Physics and Technology Institute, Alexander Frolov. In the mid-2000s, the holding “registered” in Luxembourg and began expansion abroad. After the IPO, the headquarters moved to London, and 41% of Evraz was acquired by billionaire Roman Abramovich's Millhouse for $3 billion.
Now the holding owns enterprises in Russia, the USA, Canada, the Czech Republic, Italy and Kazakhstan.
Evraz is one of the largest steel producers in the world. In 2017, the company produced 14 million tons of steel. In Russia, Evraz is the largest producer of coking coal, in the USA and Canada it is the largest manufacturer of large-diameter pipes and a leader in the production of rails. In 2018, Evraz won the competition to manage Sibuglemet, a major coking coal producer. If this company is acquired, the holding's coal reserves will increase by 300 million tons.
In August, presidential aide Andrei Belousov proposed confiscating 14 large Russian companies 514 billion rubles of excess income. Evraz was also on the list. According to Belousov’s estimates, the holding should have paid the least (5.5 billion rubles), but this news cost Evraz almost $1 billion (the company lost so much in capitalization on August 10). As a result, the government agreed with the companies on the list that they would “voluntarily” participate in national projects. However, the value of Evraz shares has not yet recovered. The largest shareholders of the holding are Abramovich (30.5%), Abramov (20.9%) and Frolov (10.5%).
"Evraz Group S.A." (“Evraz Group S.A.”) is an international mining and metallurgical corporation headquartered in the Duchy of Luxembourg. Evraz Group is a vertically integrated holding company. According to data for 2009, it is among the 500 largest companies peace.
The holding's ownership structure looks like in the following way: 72.9% of the shares are owned by Lanebrook Ltd, and the remaining 27.1% are owned by BNY (Nominees) Limited. In turn, half of the shares of Lanebrook Ltd belong to Millhouse Capital UK Ltd, which is owned by Roman Abramovich. The remaining 50% shares are divided CEO Lanebrook Ltd A. Frolov and Chairman of the Board of Directors A. Abramov. Thus, Roman Abramovich is the owner of 36.44% of the shares of Evraz Group S.A., A. Frolov controls 12.15% of the shares, and A. Abramov controls 24.29% of the holding’s shares. Another majority shareholder of Evraz Group is I. Kolomoisky. He controls 9.72% of the shares.
The corporation's activities began in 1992, when the Evrazmetall company was organized. The field of activity of Evrazmetall was metallurgical trading. Three years later, the company acquires the Nizhny Tagil Metallurgical Plant. At the turn of the century, two metallurgical plants located in Novokuznetsk came under the control of the company. At the end of 2004, during the restructuring of assets, the management company Evraz Group S.A. was registered.
The structure of the company consists of several divisions, into which enterprises are united according to their field of activity.
The steel division includes:
. "Evraz Inc. NA";
. "Evraz Vitkovice Steel";
. "Evraz Palini and Bertoli";
. "Delong Holdings" (the holding owns 10% of the shares);
. "Dnepropetrovsk Metallurgical Plant named after Petrovsky";
.
;
.
;
.
;
. Highveld Steel and Vanadium Corporation (80.9%).
The iron ore division includes:
. "Evrazruda";
.
;
.
;
. "Mining and processing plant "Sukha Balka".
Coal and coke division:
. (the holding owns 40% of the shares);
. "Mine 12";
.
;
. Coke and chemical plant "Bagleykoks";
. "Dneprodzerzhinsk Coke and Chemical Plant".
Vanadium mining division:
. "Nobody";
. Strategic Minerals Corporation (72.8%)
Logistics and trade division:
Nakhodka sea trade port;
.
;
. Trading house "Evrazresurs";
. "Evraztrans" (76.02%);
. "Euro-Asian Energy Company";
. "West Siberian Thermal Power Plant";
. "MetalEnergoFinance";
. "Shinano";
. "Ferrotrade"
. "East Metals"
. "Evraz Overseas".
The company's main activities are the mining of iron ore, coal and vanadium and the production of steel and rolled steel.
Consumers of the holding's products are dispersed across all five inhabited continents. The main consumers are in Russia and the USA.
As of 2008, the holding's total gross revenue amounted to $20 billion 380 million, gross profit - $7 billion 72 million, and net profit according to IFRS standards - $1 billion 868 million.
IN strategic plans companies - strengthening their role in the global market for ore mining, steam and coking coal, metal production through the acquisition and construction of new enterprises and the development of promising deposits.
EAM Group, Evrazholding, Evraz-group
In 1992 Alexander Abramov with fellow students at the Moscow Institute of Physics and Technology, Euroazmetal LLP (European-Asian metals) was founded in Moscow. Information was published that Abramov worked in the company of the Cherny brothers “Trans World Group”, which in the first half of the 90s controlled a significant part of the Russian metallurgy.
In 1995, on the basis of Euroazmetal LLP, JSC EAM Enterprise Group was formed, which at the end of 1995 signed a strategic partnership agreement with the Italian-Swiss company Duferco, becoming the owner of a controlling stake Nizhny Tagil Iron and Steel Works . According to Alexandra Abramova , his company gained control of NTMK, accumulating debts incurred by the iron and steel plant to coal sellers and exchanging them for shares NTMK. In the same 1995, Evrazholding LLC was created, which became the management company of the enterprises included in the EAM group.
The press wrote that Abramov agreed with NTMK General Director Yuri Komratov that the EAM Group would receive a 10% stake in the plant, in exchange for which Komratov would head a new coal and metallurgical holding. However, subsequently Abramov took control of the plant’s financial flows and product export issues, removing the plant from these most important levers of management Vyacheslav Kushcheva , who presented at NTMK interests of the FAPSI leadership, and with the support of Governor Eduard Rossel, removed Komratov (in 1998) from the post of general director NTMK.
Metal supplies by Evrazholding with NTMK were carried out through JSC Ferrox. One of the main consumers of metal NTMK there were Russian structures railways, which at that moment were under the control of the Ministry of Railways of the Russian Federation. This led to close ties between Evrazholding and the Ministry of Railways. Alexander Abramov joined the board of directors of OJSC JSCB Transcreditbank, controlled by the management of the Ministry of Railways (Nikolai Aksenenko). The structures of the Ministry of Railways and Evrazholding jointly established companies through which metal was supplied from NTMK.
Information was published that in the mid-1990s, the co-owner of the EAM group was Moscow businessman Oleg Boyko (15-20% of shares), who provided Alexander Abramov not only money, but also political connections. Until 1995, Boyko headed the executive committee of the Democratic Choice of Russia party, and in 1994-1996 he sat on the board of directors of JSC Public Russian Television. Information was published that Boyko is a member of the team Boris Berezovsky , and it has been suggested that Alexander Abramov can also be a member of this team.
At the end of the 1990s, he became vice president of Evrazholding Vasily Rudenko, who previously was deputy head of the Main Directorate for Organized Crime Control of the Ministry of Internal Affairs of the Russian Federation, and even earlier headed the Organized Crime Control Department for the Sverdlovsk Region. During this period, Evrazholding fought for control of NTMK with other large financial and industrial groups with the active participation of law enforcement agencies and criminal structures. According to Alexander Khinshtein, forceful support for Evrazholding was provided by the Assistant Minister of Internal Affairs of Russia Alexander Orlov, who was in partnership with Boris Berezovsky . As a result, Evrazholding emerged victorious from this confrontation, and the security service NTMK headed by former senior officials of the Organized Crime Control Department in the Sverdlovsk region.
During the corporate wars in the late 1990s, a conflict arose between entrepreneurs in the inner circle of the Cherny brothers. One of these entrepreneurs ( Jalol Khaidarov) accused the Cherny brothers in connection with the Izmailovo criminal group and claimed that Evrazholding and "Ural Mining and Metallurgical Company" engaged in criminal money laundering Izmailovo organized crime group. Later in the 2000s, information was published on the Internet that Alexander Abramov in the past he was a top manager of the Cherny brothers’ company “Trans World Group”.
In 2000, Evrazholding bought the West Siberian Metallurgical Plant ( Kemerovo region), displacing structures Alfa group, with the support of the Governor of the Kemerovo region Aman Tuleyev. Also in the early 2000s, the Kuznetsk Metallurgical Plant (Kemerovo Region) came under the control of Evrazholding. As a result, Evrazholding controls about 40% of Russian ferrous metallurgy. It is reported that Evrazholding controls coal mines Raspadskaya and Polosukhinskaya, as well as the Nakhodka sea trade port.
At the beginning of June 2005, the first public sale of shares (IPO) of Evraz Group took place on the London Stock Exchange. The company's capitalization amounted to $5.1 billion. It was reported that the owner of the enterprises controlled by Evrazholding is the Luxembourg company Evraz Group S.A., 91.7% of whose shares are owned by Crosland Global. The main beneficiary of Crosland Global is Alexander Abramov , which through this company controls 59.11% of the shares of Evraz Group S.A. Alexander Frolov (partner Alexandra Abramova ) controls 28.2% of the shares of Evraz Group S.A.
In June 2006, partner Abramova and Frolova became an entrepreneur Roman Abramovich: through a network of offshore companies, he acquired 40% of the shares of Evraz Group from businessmen. The securities were transferred to Lanebrook, which became the owner of 82.67% of the shares of Evraz Group. At the same time, 50% of Lanebrook was transferred to Greenleas International Holdings Limited, the ultimate beneficiary of which is the management company Abramovich Millhouse.
In August 2008, information was published on the distribution of company shares between the main beneficiaries (Millhouse Capital Roman Abramovich called owner 36.44%; Abramov- 24.29%, Frolov - 12.15%, Ukrainian businessman Igor Kolomoisky - 9.72% of shares of Evras Group).
In October 2008, during the elections for the mayor of Nizhny Tagil, the leadership NTMK supported Valentina Isaeva, despite membership in “ United Russia”, which competed with the official candidate from this party, Alexei Chekanov, who was supported by Governor Eduard Rossel. Isaeva won the elections, and the scandalous situation with the loss of the official candidate from the party in power became the reason for her resignation from the post of head Sverdlovsk branch of United Russia Alexey Vorobyov , who was simultaneously the chairman of the regional government and was confidant Eduard Rossel.
As of December 2008, the Evras Group included not only NTMK. It was emphasized that the company's division in North America, Evraz Inc. NA had by that time united the metallurgical assets of the Evras Group: Oregon Steel Mills, Claymont Steel and the Canadian enterprises of IPSCO for the production of sheet and pipe products. In addition, Evras Group was called a “major player in the global vanadium market” - its assets included Highveld Steel and Vanadium Corporation, an integrated steel and vanadium production company in South Africa, as well as Strategic Minerals Corporation and Nikom in the Czech Republic. The mining division of the Evraz Group, according to data at the beginning of 2009, united the mining enterprises of Evrazruda OJSC, the Kachkanarsky and Vysokogorsky mining and processing plants in Russia (Sverdlovsk region) and the Ukrainian mining and processing plant Sukhaya Balka. The holding’s website noted that the Evraz Group also owned the Yuzhkuzbassugol company, 40% of the shares of Raspadskaya OJSC and 10% of the shares of the Chinese metallurgical company Delong (in 2008, the Evraz Group signed an agreement to purchase up to 51% of the company’s shares).
Having completed the re-registration of the company in the UK at the end of 2011, the owners announced the distribution of shares in Evraz plc:
Roman Abramovich - 34.68%;
Alexander Abramov - 24.64%;
Alexander Frolov - 12.32%;
Igor Kolomoisky - 4.48%;
Evgeny Shvidler (partner Abramovich) - 3,5%.
In 2012, the activities of the mayor of Nizhny Tagil, Valentina Isaeva, were harshly criticized, and her connection with the leadership was emphasized NTMK. It is alleged that the competitor NTMK stands for power in Nizhny Tagil Uralvagonzavod. In the fall of 2012, the former general director wins the elections for the mayor of Nizhny Tagil NTMK Sergey Nosov, which last years worked in structures state corporation "Russian Technologies" which controls Uralvagonzavod. Thus, Sergey Nosov became a compromise figure for NTMK And Uralvagonzavod .
Date of information update: 2013.
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The Federal Antimonopoly Service (FAS) of the Russian Federation is investigating the situation at Russian market coking coal, has claims not onlyto Mechel , but also to the Evraz Group, FAS head Igor Artemyev said on Tuesday.
"Evraz Group S.A." ‑ Evraz Group ‑ is one of the world's largest vertically integrated metallurgical and mining companies. In 2007, Evraz enterprises produced 16.4 million tons of steel, 12.6 million tons of cast iron and 15.2 million tons of rolled steel.
The history of Evraz Group begins with the founding in 1992 of a small company, Evrazmetall, which specialized in the trade of metal products. During the first few years of its existence, the company's turnover and scope of activity expanded significantly. In 1995, EAM Group was formed, uniting several coal, mining and steel companies. At the end of 1995, EAM Group signed a strategic partnership agreement with Duferco, becoming the owner of a controlling stake in the Nizhny Tagil Metallurgical Plant (NTMK). In 1999, EAM Group took control of two more large metallurgical plants - West Siberian (ZSMK) and Novokuznetsk (NKMK).
At the end of 1999, the newly created EvrazHolding LLC took over the functions of the main executive body NTMK, ZSMK and NKMK, as well as Vysokogorsky and Kachkanarsky mining and processing plants, the Evrazruda company and the Nakhodka seaport.
In June 2005, Evraz Group S.A. became a public company - 8.3% of the company's shares in the form of global depositary receipts were listed on the London Stock Exchange. At the end of January 2006, another 6% of Evraz Group S.A. shares were placed on the stock exchange.
In 2004-2005, the company acquired Mine 12, a 50 percent stake in OJSC Yuzhkuzbassugol and a stake in OJSC Raspadskaya. The acquisition of the rolling mill Palini and Bertoli (Italy) in August 2005 and the largest sheet steel manufacturer in the Czech Republic, Vitkovice Steel, in November 2005 expanded Evraz’s product line with high value-added products and also opened up access to markets countries belonging to the European Union.
In 2006, Evraz acquired a 73% stake in Strategic Minerals Corporation (Stratcore), one of the world's leading producers of vanadium and titanium alloys and chemicals, headquartered in the USA, and 24.9% in Highveld Steel and Vanadium Corporation (South Africa), increasing this share to 54.1% in May 2007. Through the acquisition of Oregon Steel Mills in January 2007, Evraz has established a significant presence in the plate market and the growing pipe business in the United States and Canada and has become the world's leading rail manufacturer.
In December 2007, Evraz signed an agreement to acquire majority stakes in a number of manufacturing enterprises in Ukraine: the Sukhaya Balka mining and processing plant, the Dnepropetrovsk Metallurgical Plant named after Petrovsky and three coke-chemical enterprises (Dneprodzerzhinsk Coke and Chemical Plant, Bagleykoks and Dneprokoks plants).
In 2008, Evraz announced the purchase of the Canadian sheet and pipe mills of the North American company IPSCO, thereby expanding its presence in North America. Also this year, Evraz signed an agreement to purchase up to 51% of the shares of the Chinese metallurgical company Delong (to date, Evraz has already purchased 10% of the shares of Delong).
The mining division of Evraz Group unites the mining enterprises of Evrazruda OJSC, the Kachkanarsky and Vysokogorsky mining and processing plants. Evraz also owns the Yuzhkuzbassugol company and a 40% stake in the leading coking coal producer in Russia, Raspadskaya OJSC. Having its own base of iron ore and coal allows Evraz to act as an integrated steel producer.
Evraz is a major player in the global vanadium market. Evraz's vanadium division includes Strategic Minerals Corporation (headquartered in the USA) and Highveld Steel and Vanadium Corporation, South Africa.