Severstal icreases supplies to export markets, aouces ew opportuities

December 14, 2021

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.”


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