The Board of Directors approved the report for the first six months of 2002, when the machine building company was preparing to spin off.

According to Alexey Eugenyev, general director of Severstalmash-Tyazhmash, "Over this time earnings amounted to 953,050,000 rubles, including products sold to foreign markets totaling 213,380,000 rubles. Profits for the first six months stood at 41.5 million rubles. We were able to retain most of our staff. Our staff numbers reduced by 2% - mainly due to retirement and change of place of employment."

The next meeting of the Board of Directors will be held at the end of September of 2002. The meeting participants will discuss Severstalmash-Tyazhmash five year development plan.

About Severstalmash-Tyazhmash
Severstalmash-Tyazhmash joint stock company spun off from Severstal on July 1, 2002. It's a parent company of the Severstalmash group of companies, which includes the machine building division, the engineering center and Domnaremont, Energoremont, Metallurgremont and Stoik servicing companies. Severstalmash-Tyazhmash manufactures, assembles and repairs steel-making equipment and equipment for pulp and paper, chemical, wood-processing and gas and oil industries. It provides engineering and servicing of equipment for these industries. Severstalmash-Tyazhmash employs 10,000 people. It's the largest machine building company in Vologda region with an annual turnover in excess of 3.5 billion rubles.