Severstal to change its management structure

From Jan 2015 Severstal will transfer the management over its main company and all its assets to a new structure – Severstal Management. The latter will be headed by the major owner and current CEO of Severstal A. Mordashov who plans to pay more attention to the holding’s strategy rather than the operational issues. The goal of the reorganization is to raise the management quality and reduce expenditure but the participants of the market warn its might lead to the bureaucracy thriving and additional expenses. Yesterday Severstal announced that from 2015 the group will be controlled by “Severstal Management” CJSC that will be headed by A. Mordashov. The issue of the transfer of functions of the executive body and all the administrative and management directions from Severstal, its enterprises and a number of affiliates will be considered at the meeting of shareholders in September. “Severstal Management” was founded in April 2014 on the basis of “Severstal Resource”. The company is headed by the first deputy head-head for production of Severstal, V. Larin.