Annual Report 2007 - Severstal

Business review
Lost Time Incident Frequency Rate
42%
decrease based on 2006 figures
Investment in environmental
protection
U$111.5 m
representatives, children, educational institutions and honorary
guests of the city.
Olkon, part of the Mining segment, developed a project for
restoring lands disturbed during the production technological
cycle. The project is expected to be complete by 2015. In the
next two years the plant plans to anchor dust-forming surfaces
with an area of 180 hectares, thereby significantly reducing gross
dust emissions.
In 2007, Vorkutaugol continued its unique project for using
mine gas. It will result in safer coal mining and in reduced
output of greenhouse gases, as well as having a significant
energy-saving effect.
The principal project at Severstal North America was
modernising the C-Blast Furnace. Thanks to the ultramodern
technologies that were used for its construction, C-Blast Furnace is
one of the most efficient, productive and environmentally friendly
furnaces in the world. The new cast house will catch dispersion
particles more effectively, thus significantly improving environmental
conditions in the vicinity of the business’s operations.
In 2007, the Progetto Ambiente programme was introduced
at Lucchini’s Piombino plant. The programme is intended to
improve environmental conditions at the plant and in its
surrounding area.
In 2007, Severstal invested a total of US$111.5 million on
environmental protection.
Social programmes
We believe we have a duty to contribute to the development of
communities and regions where we have a presence. The majority
of our businesses are local economic mainstays, forming a
significant part of the regional budgets, providing work for a large
share of the local population and playing an important role in the
socio-economic life of their regions.
In 2007, as in previous years, our social activity was
concentrated in areas that are important for the local
communities and the workforces of our businesses: training
and personnel development, investments in social infrastructure,
creation of a favourable environment in the towns and regions
of the company’s presence, medical services, support of
families, pensioners and people with low incomes as well
as residential development.
In the course of 2007, Russian Steel implemented a number
of programmes to improve the quality of medical services and
strengthen employees’ health. A complex approach to the
occupational illnesses and diseases together with the early
diagnosis and treatment for Cherepovets Steel Mill employees
allowed us to reduce the number of diseases by 3.9% in
comparison with 2006.
In 2006, Severstal introduced the Corporate housing
programme. Cherepovets Steel Mill continued to build houses for
its employees. We have already built nine residential buildings
with 778 apartments (a total floorspace of 43,617 square metres).
The project involves the phase-by-phase construction of 24
residential buildings, and should be complete by 2009.
In 2007, Lucchini became a partner of the Casa Famiglia
social project that engages in housing development and support
for people with disabilities.
Education
Our development as an international integrated company is
placing new demands on the preparation of staff – there is a
need to work in a multicultural environment, correspond to high
international standards and form a unified culture of business
management. We therefore aim to unite our personnel’s talents
and initiatives with progressive technologies and the ambitious
aspirations of a global company.
In 2007, our priority for education and development was
to introduce management training programmes aimed to help
prepare managers for working in an international company.
The result was the introduction of the Global Leadership
Programme. The second area of key managers’ development
was the continuing education through an MBA programme.
In addition to this, we continue to run various training
programmes. These include the “Top 100 Programme” for the
preparation of medium-level managers, and “Talent Pool”, for
the discovery and development of young employees with great
leadership potential. We also have inter-segmental programmes
for the managers and young employees, which help to promote
horizontal links for joint projects and foster a common business
language. They also instil the ability to take our corporate interests
into account, whether for projects and management decisions or
co-operation with partners, clients and suppliers.
62 Severstal Annual Report 2007