Today Severgal held the first in person meeting of the Board of Directors of the joint venture in Cherepovets (Vologda Region) lead by Vadim Makhov, the Chairman of the Board of Directors and the Deputy general director of the Severstal-group.
   The first in person meeting of the Board of Directors of Severgal was also attended by two members of the Board of Arcelor. The meeting participants have discussed a number of ongoing issues and the course of implementation of the project. They have also decided to hold an annual shareholders meeting of Severgal on August 16, 2002.
   "The project has been implemented as planned. Today we have prepared all contracts for construction, assembly and delivery of equipment. The Board of Directors decided to recommend the shareholders meeting to approve these contracts. I can assure that we'll attempt to use the skills and resources of Severstal-Tyazhmash, the Severstal subsidiary, to the maximum. We have created a team of the best Severstal construction, hydraulics, electrical systems and mechanical systems designers. We hope that the shareholders will support our decisions. Then Severgal's general director may sign all the necessary paperwork. The annual shareholders meeting is scheduled for August 16," said Vadim Makhov.
   Severgal joint venture was registered in the Russian Federation with 75% of shares being owned by Severstal and 25% by Arcelor. The galvanizing line will be built at Severstal's industrial site by the beginning of 2004. The Severgal joint venture will produce cold rolled steel sheet with zinc coating - Exragal TM for interior and exterior parts of vehicles. The line will have a capacity of 400,000 tonnes a year. As one of the parties in the agreement, Arcelor will provide a license for use of its proprietary product, including the trade mark and the associated know-how.
   At the meeting the managing team headed by Ivan Nefedov was introduced to the Board of Directors.

   Nefedov Ivan, born in 1974
   In 1966, Mr. Nefedov graduated from Cherepovets Military Institute of Radio-Electronics. From 2000 till 2001 he studied for an MBA degree at the Newcastle School of Business, University of Nortumbria, Great Britain. Since September 2001 he worked in the Severstal's strategic planning department, involved in the Severgal joint venture.

   Prior to the Board meeting, a number of appointments were made to the key executive positions of the joint venture. Alexander Tumanov was appointed the commercial director, Alexander Artyushechkin - the technical director, Alexey Novikov - the financial director of Severgal.

   Tumanov Alexander, born in 1975
   In 1977, Mr. Tumanov graduated from Cherepovets State University with a major in Automation of technologies and production processes. From 2000 through 2001 he studied for an MBA degree at the Newcastle School of Business, University of Nortumbria, Great Britain.
   Upon graduation from Cherepovets State University he was employed as an economist in the section of trade claims in the Sales department.
   In 1999, he was put in charge of the bureau of settling trade disputes in the section of trade policies of the Sales department. From 2001 till present appointment he had been employed as manager of the analytical group of the Sales department. He mainly worked to protect Severstal's interests in export and domestic markets, took part in antidumping investigation and processes of setting trade barriers, he worked with government bodies of various countries on trade issues and Russian succession into WTO.

   Artyushechkin Alexander, born in 1961
   In 1981 he graduated from Magnitogorsk Industrial College with honors, and in 1986 he graduated from Magnitogotsk Mining and Steel-making Institute with a major in Mechanical equipment of ferrous steel mills. In 2001, he graduated from St. Petersburg State Technical University with a degree in Management.
   Beginning from July 1986 he has been employed at Severstal. For a year he worked in the mechanical services unit of the cold rolling shop. From 1987 till 1994 he was a mechanic, a senior mechanic and a senior supervising mechanic of the galvanizing unit of the cold rolling shop. With the opening of the cold rolling plant in 1993 was appointed a mechanic of the unit of coatings. From 1994 till present appointment he had been a supervisor of the coatings shop of the cold rolling plant.

   Novikov Alexey, born in 1969
   In 1994 he graduated from St. Petersburg State Technical University with a major in engineering and steel-making. From 1996 till 2001 he studied for a degree in Economics at St. Petersburg State University of Finance and Economics.
   From 1994 till 2001 he worked in Metcombank, his latest appointment there was that of the Head of the Treasury. In January 2002 he started his career at Severstal in the Finance and Economics department. In April 2002, he was employed by Severgal joint venture.

   According to Vadim Makhov, "We have created the energetic and strong management team, which intends to build the best galvanizing line for the automotive industry in all of former CIS and Eastern Europe. Market forecasts for this product look much better than we have expected. Both Severstal and Arcelor offer all financial support to assure that the work is done as scheduled. The first tranche of stock capital has been already invested into the joint venture. Negotiations with the European Bank of Reconstruction and Development are virtually complete on crediting the second tranche."