Add to favorite
Subscribe to our Newsletters Subscribe to our Newsletters Get Daily Updates RSS
russian visa

Russian Metallurgical Companies
September 6, 2007 12:45

The metallurgical industry of Russia is one of most rapidly developing sectors. Here is a list of Russian leading metallurgical companies.

United Company RUSAL

United Company RUSAL is a merger formed by three metallurgical companies - RUSAL (Russian aluminum), SUAL and Swiss Glencore, holding 66%, 22% and 12% of the stake respectively. Being the world’s largest producer of aluminum and alumina, United Company RUSAL accounts for almost 12% of entire global output of primary aluminum and 15% of the world’s alumina production. The branches of the company can be found in 19 countries all over the world. Besides, the company has got 14 aluminum smelters, 10 alumina refineries, 4 bauxite mines and 3 foil mills. The number of employees working for the company exceeds 100.000 people.

The merger of RUSAL,SUAL and Glencore was completed in 2007, while the agreement was signed a year prior to it. RUSAL is the “youngest” company compared to the other partners – it was established in 2000 as a result of merging aluminum and alumina assets of Sibneft and Sibirski Alumini. SUAL (The Siberian and Urals Aluminum Company), comprising equities of Irkutsk and Ural aluminum smelters, was founded.

Glencore was created in 1976 and was the world’s largest metal processing private company at that time. The main projects of United Company RUSAL are located in Siberia and the Urals, among them construction of Aluminum smelter near the city of Irkutsk and Komi Aluminium Bauxite and Alumina Complex.

Norilsk Nickel

Norilsk Nickel is the company frequently mentioned in business news irrespective of whether its stock price rises or falls. The attention paid to the company can be explained by its rapid growth and position at the stock exchanges: even if all the majority of companies suffer crisis, Norilsk Nickel’s securities may raise in price.

The company’s full name is Open Joint Stock Company MMC Norilsk Nickel. The company is the world's largest producer of palladium and nickel, one of the leading platinum producers and one of the largest copper producers. The Company also produces a large number of by-products, including metallic cobalt, rhodium, silver, gold, tellurium, selenium, iridium and ruthenium. Its main activities are prospecting, exploration, mining, beneficiation and metallurgical processing of minerals, with further production, marketing and sale of non-ferrous and precious metals.

Its market share exceeds 20% of nickel, 10% of cobalt and 3.1% of copper production worldwide. Domestically, MMC Norilsk Nickel holds close to a 96% market share of nickel, 55% of copper and 95% of cobalt production.

Norilsk Nickel was established On November 4, 1989, but then it was named the State Concern for Non-Ferrous Metals Production Norilsk Nickel. Later in 1993 the Concern was reorganized into the Russian Joint Stock company Norilsk Nickel for Production of Non-Ferrous and Precious Metals.

Late in 2012, Vladimir Potanin, Interros, and Oleg Deripaska, UC Rusal, have announced they signed a peace deal to end their 4-year bitter dispute over the way Norilsk Nickel is run, where they both have a blocking stake. 

Roman Abramovich agreed to step in as a mediator, with his Millhouse Capital buying 7,3% of treasury stock for $2 billion.

The chairperson of the board will have to be an independent directors agreed by the parties. The final composition will have to be approved by an extraordinary meeting of the shareholders.

Interros and Rusal also agreed to suspend their ongoing legal disputes. If the arrangements of the deal are implemented, the sides will drop their claims.

 Polyus Gold

Polyus Gold is the only Russian company on the world market of largest gold-producers. It was established in 2006 as a result of spin-off, as earlier the assets of the company were a part of Norilsk Nickel’s equities. The company’s headquarters is located in Moscow, while its main development projects are 5 major gold mining regions of Russia - Krasnoyarsk, Irkutsk, Magadan, Amur regions and the Republic of Sakha (Yakutia).

Over 12 500 people work for Polyus Gold. Its gold production in 2006 amounted to 37.8 tones (1 215 k oz).

In February 2013, Billionaire Prokhorov’s Onexim group has sold 37.78 percent of Polyus Gold International Limited.   

Lizarazu Limited, controlled by MP Zelimkhan Mutsoev, acquired 18.5 percent for $1.7 billion while Gavriil Yushvaev’s Receza Limited got 19.28 percent for $1.8 billion.


Severstal is the key Russian steel producer and is rated one of the leading companies at this segment of the world market. Severstal has four business divisions: Russian Steel and Metalware, Severstal North America, Lucchini and Severstal Mining.

It was founded on the basis of the mill on September 24, 1993.

Main products of the company arehot and cold rolled steel, coated steel, roll-formed shapes and pipes, rolled sections, a large group of coke products and by-products.

Severstal’s primary mill is situated in Cherepovets in the North-West of Russia. Althought the city stands 900 miles away from ore deposits, it is clear that it wasn’t built occasionally, as it is located at the junction of the European north, the north-west and the central regions. Cherepovets Steel Mill was opened in 1955. In the following years, new steel making capacities were commissioned, including blast furnaces, electric arc furnaces, oxygen converters, rolling mills for sheets and section steels.

Crude steel production at Severstal's Russian mills in 2012 stood at 10.6 million tons, down 7% from 2011. Crude steel production at Severstal's North America mills in 2012 stood at 4.6 million tons, up 16% from 3.9 million tons in 201

In 2013, Severstal has announced it will invest $1.3 billion in its operations worldwide.

At least 10 coalminers died in an explosion at the Vorkutinskaya mine operated by Severstal in February 2013.


Mechel is a company based on Chelyabinsk Metal Works, which was founded in 1943 on Baikal iron ore field known since the 18th century. Today open joint stock company Mechel is a low-cost fully integrated mining and steel company focused on the production of mining products, such as coal, iron ore, nickel, and steel products.

The company’s business is comprised of two segments: mining and steel, comprising facilities in Russia, Romania and Lithuania. Besides, Mechel owns two trade ports, a railway and an energy company. The mining segment of the company implies production and sale of coking and steam coal, iron ore and nickel. This segment also supplies raw materials to the steel segment.

Mechel’s steel business comprises production and sale of semi-finished steel products, carbon and specialty long products, carbon and stainless flat products, and value-added downstream metal products including hardware, stampings and forgings.

In 2013, Mechel announced it will sell its Romanian assets for $70 million to avoid the planned loss of $79.6 million.

Magnitogorsk Iron&Steel Works (MMK)

Magnitogorsk Iron and Steel Works open joint stock company is the leader of the Russian ferrous industry. Its share at this segment of the Russian market is about 20%. The company is based on an integrated steel making complex producing the widest range of iron and steel products in Russia and CIS countries. About 50% of the company’s production is exported.

In 2006 MMK produced approximately ,468,200 tons of iron ore materials (96.1 % against 2005), 10,749,900 tons of sinter (103,9 %), 5,496,000 tons of coke (98.6 %), 9,732,600 tons of iron (100.8 %), 12,463,500 tons of crude steel (109.4 %) and 12,059,700 tons of rolled products.

Today the company produces and sells over 600 items of finished products. The main goal of MMK for several next years is modernization of its production facilities, and 1 billion dollars I scheduled to be spent for this purpose up to 2013.

VSMPO Avisma

VSMPO Avisma is the world’s largest titanium manufacturer. It was founded in the Soviet times in 1933 under Moscow. Initially it was a plant 45 destined to produce aluminum products for the developing aeronautical engineering. Under the direction of S.M. Voronov, Chief Metallurgist, the entirely new high-strength – 95 alloy was developed for manufacture of the load-bearing elements for high-speed bomber N – 40.

After WWII development of aerospace equipment and foundation of the powerful Russian submarine navy required application of the new materials providing wider capabilities and meeting strict requirements for operational performance. TITANIUM was one of such materials.

By the end of the 80s, VSMPO has become not only the significant domestic producer, but the world’s largest supplier of semi-finished titanium products. The amount of titanium ingots melted at VSMPO was 1.5 times more than that produced in the rest of the world.

Today the company supplies titanium to Airbus and Boeing. VSMPO Avisma controls three subsidiaries: Tube Works VSMPO-AVISMA, earlier known as CETAB Nikopol Works, VSMPO-Tirus performing the sales and distribution activities in Europe and North America for VSMPO and NF&M International operating on the jet engine, airframe, medical, and consumer markets.

Novolipetsk Steel

OJSC Novolipetsk Steel (NLMK) is one of Russian leading steel producers. Founded in 1931, an integrated iron and steel works manufactures pig iron, slabs, hot-rolled, cold-rolled, galvanised, pre-painted, transformer and dynamo steel. In 2007 the company supplied its production to 60 countries of Europe, South and North America, Asia, Africa and Middle East. Being the third largest steel and rolled metal products producer, Novolipetsk Steel accounts for 13% of the Russian steel market.

The key facilities of the company are located in the Russian town of Lipetsk, the central European part of the country, and within 350 km of Stoilensky GOK, the main iron ore supplier.

Novolipetsk Steel’s mining assets:

Stoilensky GOK, the third biggest iron ore producer in Russia, is 100% subsidiary of NLMK. In 2005, Novolipetsk Steel acquired from the Russian state a license for a large coking coal deposit Zhernovskoe-1 with 240 million tonnes of coal reserves. This is expected to be operational by 2009.

In 2006, NLMK purchased a 94% interest in coke producer JSC Altai-koks, a leading Russian coke-chemical plant. NLMK’s mining segment also includes OJSC Dolomite, a furnace dolomite producer, and OJSC Stagdok, a fluxing limestone producer.

In January 2013, OJSC Novolipetsk Steel announced a 25% increase in its 2012 crude steel production to 14.9 million tonnes, with Russian assets accounting for about 95%.

Legal advice on Russian legislation



Olga Pletneva (updated by Mikhail Vesely)

Tags: Russian business Russian companies    

Next Previous

You might also find interesting:

Russian Real Estate Developers Russian TV Channels Russian Social Networks: An Overview Russian Machine-Building Plants Electronic Russia: 10 Russian ompanies Able to Meet Competition with the West, Part 1

Comment on our site

RSS   twitter      submit

demonstration of the seven  St. Petersburg  Moscow  Fairs in Moscow  Russian Winter 2013  Russian football  Sokolniki Park  Mercedes-Benz Fashion Week Russia  Mikhail Degtyarev  Kolomenskoye  VKontakte  Perm  Pobeda  Russian science  Rostov-on-Don  Yekaterinburg  Lyubov Popova  Russian scientists  Perm Territory  Japanese Art  The Romanovs Dynasty  Russian Central Bank  Yartsevo  technology  Russian Steambath  Russian business  bus tickets Russia FIFA  racism in Russia  Travel  Heroism   Lyudinovo  Russian Metro  Exhibitions in Moscow  Russian economy  Festivals in Saint Petersburg  Russian Cinema  Russian biologists  Novosibirsk  Maryana Naumova  Russian car market  long life  Home Credit and Finance  Vadim Abdrashitov  Russian actors  Russian tourism  Russian customs  Museum of Architecture  Online Exhibitions  Belokurikha  tourist destinations 

Travel Blogs
Top Traveling Sites