Public Joint Stock Severstal : Severstal increases supplies to export markets, announces new opportunities

December 14, 2021 Severstal increases supplies to export markets, announces new opportunities

Dmitry Goroshkov, Director of Sales and Business Development, Energy at Severstal shared the Company's energy market outlook for 2022 and provided an overview of key achievements in 2021 at an on online media briefing on December 9.

In 2021, Izhora Pipe Mill's share of exports in the order book increased by 11 pp compared to 2020, with large diameter pipes (LSAW) remaining a key product for the energy segment. Volumes supplied to export markets more than doubled in 2021 compared to 2020.

This year, the Company significantly expanded its sales geography with shipments to a number of new regions, including South America (Brazil, Peru) and Canada. Severstal also continues to develop mutually beneficial partnerships with customers in Europe, MENA, South and North America. In Canada, the Company strengthened its cooperation with local distributers.

The Company also reported a significant number of new product qualifications. Severstal is now qualified to supply to 38 new companies, including EGPC, GASCO, ADNOC, McDermott and ILF, bringing its total number of qualifications to 66 at the end of 2021.

Severstal continued to explore new opportunities, including in hydrogen transportation. The Company has partnered with the DNV GL Design and Operation of Hydrogen Pipelines initiative, teaming up with several market leaders with the goal of developing the best design and material solution for hydrogen pipelines as early as 2022.

The Company also expanded its presence in the wind energy sector, aiming to support the continued development of the renewable energy sector in Russia, to provide companies with more opportunity to reduce their environmental impact. WindarSeverstal, a JV between Severstal and Renovables S.L. has produced over 340 steel towers for wind turbines.

Dmitry Goroshkov, Director of Sales and Business Development, Energy, commented:

"2021 has been a very productive year for Severstal in the energy market. We more than doubled out export volumes and significantly expanded our sales geography. Next year, we will continue to further build on this, focusing on offshore and sour service projects while expanding our wind energy and hydrogen transportation market presence."