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. Last Updated: 07/27/2016

Severstal Takes Top Position in Steel Output

Severstal has become Russia's largest steel producer in terms of production, with an output of 15.1 million tons last year, according to an International Steel Association report published last week.

The company, majority owned by board chairman Alexei Mordashov, edged one place ahead of Evraz Group, which produced 13.8 million tons in 2005. Severstal now ranks as the world's 13th-largest steelmaker, the report said.

Severstal's figures include production at U.S.-based Rouge Industries and Italian-based Lucchine, which it bought last year. The two firms last year produced 2.5 million tons and 4 million tons of steel, respectively.

Globally, Russia's Magnitogorsk Iron & Steel Works ranked 22nd and Novolipetsk 30th in a list topped by Mittal, which boasted an annual output of close to 50 million tons. China had the most steelmakers in the rankings, with nine in the top 30.

Magnitogorsk produced 11.3 million tons and Novolipetsk 8.7 million tons, the report said.

Seizing pole position among Russian steelmakers in terms of volume, Severstal expects its growth to be mainly organic this year, due to a lack of acquisition opportunities, said Dmitry Druzhin, the company's head of investor relations.

"The current trend is for steelmakers to expand their business, and we will also do that with an eye on merger and acquisition activities. At the moment, there's nothing attractive to buy" in Russia or globally, he said, without elaborating.