Presse Release

OAO Severstal and RÜTGERS set up Severtar joint venture Coal tar processing facility planned at Severstal site in Cherepovets, Russia

Castrop-Rauxel, 24 September 2011

RÜTGERS Holding Germany GmbH and OAO Severstal are establishing the Severtar joint venture to set up a coal tar processing facility at Severstal headquarters in Cherepovets. Alexander Grubman, General Director of the Severstal Russian Steel Division, and Henri Steinmetz, President and CEO of the RÜTGERS Group, signed an agreement to this effect in Moscow on Friday, September 23, 2011.

The Severtar joint venture will set up production facilities for the processing of coal tar based on the coke production plant at the Cherepovets location in order to supply premium quality chemical raw materials to the international market. In addition to a distillation plant for the raw material coal tar used to produce coal tar pitch and other chemical raw materials, facilities for processing technical oils and naphthalene are also planned. The production facilities will feature state-of-the-art technology and comply with international environmental standards.

“The joint venture is a key step in the further growth of our company,” says Henri Steinmetz, CEO of the RÜTGERS Group. “After securing our operations in Europe and expanding our activities in North America, RÜTGERS is now tapping into additional markets in Eastern Europe and the Middle East. At the same time, we are ensuring the supply of raw materials to our existing international network, thereby strengthening the RÜTGERS Group production structure.”

Severstal brings a long-term supply contract for the raw material coal tar into the joint venture. RÜTGERS contributes technology and its global logistics network to the undertaking. RÜTGERS will hold a 51% stake in the planned joint venture and Severstal 49%. The new company, Severtar, is scheduled to be fully operational starting in 2013.

The Russian company Severstal is a leading steel manufacturer with headquarters in Cherepovets.

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