NLMK Group (LSE: NLMK), the largest steel producer in Russia and one of the most efficient steel companies in the world, announces changes in its management structure. These changes aim to strengthen NLMK’s strategic functions: internal control and risk management, occupational health and safety and the environment.
These changes come into effect on 1 January 2016. They are part of NLMK Group’s effort to streamline its management structure introduced in 2013 and are aimed at boosting the efficiency of Strategy 2017.
Internal Control and Risk Management
In order to develop its risk management practices, NLMK is creating the position of Vice President for Risk Management. Eugene Ovcharov, who integrated NLMK’s internal control and risk management systems across all Group assets in his previous capacity as Director for Internal Control and Risk Management, will become the new Vice President for Risk Management.
Occupational Health and Safety and the Environment
In line with global best practices, NLMK Group is combining its occupational health and safety and environmental compliance functions. Viktor Togobetsky, who previously held the position of NLMK Group’s Director for Occupational Health and Safety (OHS), will assume the role of head of the combined function in the position of Vice President. Viktor Togobetsky’s goal will be to continue to improve the Company’s performance in these areas in order to ensure its leadership in OHS and to reduce the environmental footprint of NLMK Group’s companies in Russia and abroad.
Other personnel decisions
NLMK Russia Long Products, an NLMK Group division, will be headed by
. He will combine this role of division head with the role of Vice President for Finance and Member of NLMK Management Board. Alexander Burayev who previously headed the division will assume a different role within NLMK Group due to his retirement.
is appointed to the position of Vice President for Energy. He previously held the position of NLMK’s Director for Energy Efficiency and Energy Markets. He will replace Alexander Starchenko. In order to boost business process efficiency and improve investment project management, NLMK is eliminating the position of Vice President responsible for the Strategic Raw Materials Department held by Alexander Saprykin. The Department’s investment projects will be transferred to Konstantin Lagutin, Vice President for Investment Projects. Oleg Molchanov, Head of Commercial Services of the Raw Materials Department, is appointed Director for Raw Material Supplies.
, NLMK CEO said: “Despite challenging market conditions, NLMK Group is well ahead of schedule with the key goals of Strategy 2017. The effectiveness of a company in any market environment stems, to a great degree, fr om its highly professional personnel – from the production line to the boardroom. We work on strengthening our organization in such strategically important areas as risk management, occupational health and the environmental protection, in order to ensure our leadership positions in these areas. New managers have ambitious goals to deliver, but the basis for successful implementation has already been laid by the company.
“I would like to thank Alexander Buraev, Alexander Saprykin and Alexander Starchenko for being part of NLMK team for many years; and their personal contribution to the Group’s success. Their efforts made our company a leader in long steel manufacturing, resource integration and energy efficiency. I wish my colleagues every success and professional achievement for the future.”
has been NLMK Group CFO since January 2013. From 2011 to 2013 he served as NLMK Group Director of Strategy and Business Development. Member of the NLMK Management Board since 2012. From 2009 to 2012 served as an investment manager at Libra Capital, a Moscow-based investment management company.
From 2001 to 2009 worked for PricewaterhouseCoopers consulting company wh ere he held positions up to a director of business restructuring practice.
Graduated from Academy of Finance, Moscow. Holds a master degree in Business Administration from INSEAD business school, France & Singapore. A member of an association of Certified Financial Analysts (CFA).
joined NLMK in 1998. In 2011, he became Head of Corporate Finance. In 2013, he was appointed NLMK Group’s Director for Internal Control and Risk Management. He graduated from Lipetsk State Technical University, majoring in Management, in 1999. Ph.D., Ec.
joined NLMK in 2000 as an economist in the fuel and energy complex. From 2007 to 2013, he was NLMK Group Head of Energy Policy Management; promoted in 2013 to Director for Energy Efficiency and Energy Markets. He graduated from Lipetsk State Technical University, majoring in Applied Mathematics, in 2002. Ph.D., Tech. (2004).
Viktor Togobetsky joined NLMK in 2013 as Director for Occupational Health and Safety. Before joining NLMK he was in charge of occupational health; industrial and fire safety; and the environment at leading international production companies, including Alcoa, Philip Morris, Ford Motor Company, Nestle, and PepsiCo. In 2001, he was awarded an International Certificate in Occupational Safety and Health from the British Safety Council (London); in 2011 he was awarded a professional management certificate, MBA, from LINK International Management Institute.
About NLMK Group
NLMK Group is the largest steelmaker in Russia and one of the most efficient in the world. NLMK’s metal products are used in various industries, from construction and engineering to the manufacture of power-generating equipment and offshore wind turbines.
NLMK's production assets are located in Russia, Europe, and the United States. The Company’s liquid steel production capacity is over 17 million tonnes per year, of which about 16 million tonnes are produced in Russia.
NLMK has the most competitive cash cost among global manufacturers; and one of the highest profitability levels in the sector. The company generated $6.37 billion in revenue; $1.63 billion in EBITDA; and a net profit of $891 million in 9M 2015. Net Debt/EBITDA is 0.5. The company has a BBB- credit rating (Fitch Ratings).
NLMK’s ordinary shares are traded on the Moscow Stock Exchange (ticker symbol: NLMK), and its global depositary shares are traded on the London Stock Exchange (ticker symbol: NLMK:LI).