INDUSTRIAL CENTERS: EFFICIENT MECHANISMS FOR YOUR BUSINESS

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INDUSTRIAL CENTERS EFFICIENT MECHANISMS FOR YOUR
BUSINESS
2007
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severstal - metiz - an international company
producing wire and wire products, gives an
opportunity to investors to organize business at
its areas
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severstal - metiz
STRUCTURE OF THE COMPANY
Severstal-metiz - an international company
producing metal products (wire and wire
products), comprises enterprises of Russia,
Ukraine and Great Britain. Share of the company
at the domestic market of Russia 26, share of
sales in Ukraine 18. The company
Severstal-metiz is comprised in one of the
largest holding in steel industry JSC
Severstal ( www.severstal.com ), which
production capacities include sintering
machines, coking plants, blast furnaces, steel
straightening and rolling mills, hot-treatment
lines and coating lines that allows to produce a
variety of assortment of long products and flat
sections, including hot and cold-rolled steel
(with coatings as well), hot-rolled and formed
profiled steel, pipes and smelt 11,6 mln. tons of
steel per year. The main production
capacities of JSC Severstal are located in
Cherepovets (Cherepovets metallurgical plant).
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severstal - metiz
INDICATORS
Great Britain
Russia
Ukraine
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Prerequisites for
foundation of industrial centers
ON THE BASIS OF THE PLANTS OF SEVERSTAL-METIZ
Presence of non-utilized production
areas Presence of high-requested and modern
infrastructure at the plants Advantageous
geographical position Human resources
potentional High investment attractivity and law
investment risks of the regions Favourable
investment climate
Cherepovets plant
Orel plant
Volgograd plant
CHARACTERISTICS OF REGIONS
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severstal-metiz - supplier of raw material
JSC SEVERSTAL-METIZ, AS A BIG PRODUCER OF METAL
PRODUCTS, IS ABLE TO PROVIDE WITH RAW MATERIAL
THE MANUFATURES COMPRISED INTO INDUSTRIAL CENTERS
PRODUCTS OF COLD - DRAWN STEEL
WELDING MATERIALS
FASTENERS
HIGH CARBON
LOW CARBON
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severstal-metiz
AREAS OF INDUSTRIAL CENTERS
NORWAY
SWEDEN
GREAT BRITAIN
FINLAND
RUSSIA
MOSCOW
POLAND
GERMANY
FRANCE
UKRAINE
ROUMANIA
ITALY
CHARACTERISTICS OF PLANTS
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Vologda region
OREL REGION
VOLGOGRAD REGION
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Vologda region
DESCRIPTION OF TRAFFIC CENTER
To Arkhangelsk
To st. Petersburg
Cherepovets
To Moscow
OREL REGION
VOLGOGRAD REGION
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Vologda region
INVESTMENT CLIMATE
Creation of favourable investment climate in
Vologda region is supported by legislation.
The law on government regulation of
investment activity at the territory of Vologda
region defines the forms and methods for
regulation of investment activity The guarantee
of protection of investors' rights and interests
Provision of advantages to investors regarding
income tax (decrease in tax rate, transferred to
regional budget, by 4 for the period up to 5
years), property tax (exemption from tax for the
period up to 5 years), transport tax (exemption
from tax for the period up to 5 years)
OREL REGION
VOLGOGRAD REGION
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Vologda region
HR RESERVE

• The number of resident population in Cherepovets
  amounts to 323,6 thous. persons.
• The number of employees 149 thous.persons.
• Unemployment rate 1,7 , that is less than
  average rate in the region
• There is a developed system for technical
  specialists training in the region
• The base of the system for technical specialists
  is considered to be ChGU (Cherepovets State
  University)
• At present time in Cherepovets there are
  successfully trained the specialists in 2
  institutes of higher education ( number of
  affiliates of out-of-town institutes of higher
  education), 5 colleges, 9 primary vocational
  schools
• Average monthly wage of the workers of industrial
  enterprises of Cherepovets in 2007 amounts to
  21,645 thous. rub.

OREL REGION
VOLGOGRAD REGION
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Cherepovets plant severstal-metiz
OREL PLANT
VOLGOGRAD PLANT
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scheme
OF CHEREPOVETS PLANT SEVERSTAL-METIZ UNITS OF
INDUSTRIAL CENTERS
Production workshops of JSC Severstal-metiz?
Units, offered for location of Industrial center
production areas 44513 m2
administration areas 2874 m2 building land
0,26 hectare
Infrastructure units and auxiliary workshops
Outside manufactures
OREL PLANT
VOLGOGRAD PLANT
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scheme
OF CHEREPOVETS PLANT SEVERSTAL-METIZ WITH
INDICATION OF MAIN INFRASTRUCTURE UNITS
ELECTRICAL ENERGY NATURAL GAS WATER
SUPPLY TREATMENT FACILITIES HEAT ENERGY
PROTECTIVE GAS COMPRESSED AIR
TELECOMMUNICATIONS ACID STORAGE etc.
AREA RAILWAY
CUSTOMS TERMINAL ADDITIONAL SERVICE
WHAREHOUSING
OREL PLANT
VOLGOGRAD PLANT
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Orel region
VOLOGDA REGION
VOLGOGRAD REGION
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Orel region
DESCRIPTION OF TRAFFIC CENTER
Motor transportation The city Orel has a
developed net of highways, the basic track is
considered to be federal track ?2 Moscow
Simferopol. It allows to carry out
round-the-clock motor transportation both by
highways in the direction of Moscow, Ukraine and
southern regions of Russia, and in the direction
of neighbouring regions (Bryansk, Tula, Lipetsk,
Kursk) in the other regions of Russia. Transit
through Ukraine and Belorussia allows to deliver
goods to the countries of Central and Eastern
Europe. Railway traffic Orel is considered to be
large railway junction, which is comprised into
Orel-Kursk department of Moscow railway and
allows to carry out transportations in the
following directions MOSCOW BELGOROD and
BRYANSK VORONEZH, that is in its turn gives an
opportunity to deliver loads through ports of
the Black and Baltic seas, as well as in the
countries of Eastern and Central Europe.
TO MOSCOW
TO BRYANSK
OREL
TO BELGOROD
TO VORONEZH
VOLOGDA REGION
VOLGOGRAD REGION
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Orel region
INVESTMENT CLIMATE
Creation of favourable investment climate in Orel
region is supported by legislation The law On
investment activity and state innovation policy
in Orel region The law On investment activity
in Orel region, stipulating motivation of
investment activity advantages and privileges
regarding taxation concerning payments,
transferred to regional budget, special regime of
investment activity In the frame of special
regime there are provided advantages within the
terms stipulated by the law Regarding income tax
to the local budget (up to 23), Regarding
property tax for organizations (up to 50)
VOLOGDA REGION
VOLGOGRAD REGION
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Orel region
DEVELOPMENT OF NEW WAYS TO ATTRACT INVESTMENTS
At investment fair Orel-2006, which took place
in Orel on June,12, there was signed an
agreement between the board of administration of
Orel region and JSC Severstal-metiz The
subject of the agreement is an organization of
cooperation and interaction of Orel region
administration and JSC Severstal-metiz, aimed
at development of the project Industrial center
Orel, for the purpose of formation on the basis
of production areas of the subsidiary Orel
plant JSC Severstal-metiz of new highly
efficient manufactures of industrial
character In the frames of this agreement
investments into development of Industrial center
Orel will amount to 172 mln. rub.
VOLOGDA REGION
VOLGOGRAD REGION
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Orel region
HR RESERVE
The number of resident population in Orel amounts
to 326,8 thous. persons. The number of
able-bodied citizens has increased by 14 thous.
persons during the period of 2000 till
2005 Unemployment rate 1,8 There is a
developed system for training of technical
specialists in the region The base of the
system for technical specialists training is
considered to be Orel GTU (Orel state technical
university). Orel GTU occupies 51-st position in
the rating list of technical and technological
institutes of higher education in Russia of
Ministry of education of RF in 2005 (4-th place
among institutes of higher education, comprised
into ???) In the structure of Orel GTU there is
included Orel polytechnic college providing
secondary and technical education At present
time in Orel GTU the number of students amounts
to 15 thous. students, getting higher technical
education. Total number of teaching staff of Orel
GTU amounts approximately to 2 thous.
persons. In total in the city there are 10
institutes of higher education, 16 technical
schools, 29 vocational schools Average monthly
wage of the workers at large and medium
enterprises of Orel in 2006 amounted to
7,77thous. rub.
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VOLOGDA REGION
VOLGOGRAD REGION
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Orel plant severstal-metiz
CHEREPOVETS PLANT
VOLGOGRAD PLANT
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scheme
OF OREL PLANT SEVERSTAL-METIZ UNITS OF
INDUSTRIAL CENTER
Production workshops of JSC Severstal-metiz Unit
s, offered for location of Industrial center
production areas 142067 m2 administrative
areas 20627 Building land 17hectare
(expansion due to land belonging to local
authorities, 40 hectare) Infrastructure units
and auxiliary workshops Outside
manufacturers Departments transferred for
outsourcing
CHEREPOVETS PLANT
VOLGOGRAD PLANT
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scheme
OF OREL PLANT SEVERSTAL-METIZ WITH INDICATION
OF MAIN INFRASTRUCTURE UNITS
TELECOMMUNICATIONS SAFETY SERVICES ACID
STORAGE etc. AREA RAILWAY WAREHOUSING
CUSTOMS TERMINAL ADDITIONAL SERVICE
ELECTRIC ENERGY NATURAL GAS WATER SUPPLY
TREATMENT FACILITIES HEATING ENERGY
PROTECTIVE GAS COMPRESSED AIR
CHEREPOVETS PLANT
VOLGOGRAD PLANT
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Volgograd region
VOLOGDA REGION
OREL REGION
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Volgograd region
DESCRIPTION OF TRAFFIC CENTER
To Moscow
Motor transportation Volgograd has a developed
net of highways, the main track is considered to
be the federal track ?6 Moscow Astrakhan. It
allows to carry out round-the-clock motor
transportations both by highway in the direction
of Moscow, Ukraine, Kazakhstan and the southern
regions of Russia, and in the direction of
neighbouring regions (Rostov, Astrakhan,
Voronezh), republic of Kalmykia as well as in the
other regions of Russia. Total length of highways
more than 16 thous. km (53 are the hard-top
roads of general designation). Railway
traffic On the territory of the region there are
important railway tracks. Total length of railway
tracks amounts to 2,5 thous.km. Water
traffic The lower reaches of the Volga and Don,
connected with the Volga-Don navigation channel
are favourable for transportation through the
region and ports of the European countries of
different goods to the zones of African
navigation, the Near East and Middle East. Total
length of internal waterways is 1,5 thous.km.
To samara
volgograd
Outlet to the Caspian sea
To krasnodar
VOLOGDA REGION
OREL REGION
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Volgograd region
INVESTMENT CLIMATE
Creation of favourable investment climate in
Volgograd region is supported by
legislation The law On innovation activity and
state innovation policy in Volgograd
region The law On innovation activity in
Volgograd region, stipulating motivation of
innovation activity advantages and privileges
regarding taxation in respect of payments,
transferred to the regional budget, special
regime of investment activity
VOLOGDA REGION
OREL REGION
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Volgograd region
HR RESERVE

• The number of resident population in Volgograd
  amounts to 1027 thous. persons.
• Number of employees 383,3 thous. persons.
• Rate of unemployment less than 1,0 regarding
  economically efficient population
• There is a developed system for training of
  technical specialists in the region
• The basis of the system for training of technical
  specialists is considered to be VGTU (Volgograd
  state technical university)
• - At present time in Volgograd specialists are
  successfully taught in 17 institutes of higher
  education, 34 vocational schools
• Average monthly wage of workers of industrial
  enterprises in Volgograd in 2007 amounts to 11
  thous. rub.

VOLOGDA REGION
OREL REGION
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Volgograd plant severstal-metiz
CHEREPOVETS PLANT
OREL PLANT
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scheme
OF VOLGOGRAD PLANT SEVERSTAL-METIZ UNITS OF
INDUSTRIAL CENTER
Production workshops of JSC Severstal-metiz
Units, offered for location of Industrial center
production areas 143 891 m2
administrative areas 16 331 m2 building
land 3,7 hectare
Infrastructure units and auxiliary workshops
Outside manufacturers
The units will be offered for sale in 2009-2012.
CHEREPOVETS PLANT
OREL PLANT
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scheme
OF VOLGOGRAD PLANT SEVERSTAL-METIZ WITH
INDICATION OF MAIN INFRASTRUCTURE UNITS
ELECTRIC ENERGY NATURAL GAS WATER
SUPPLY TREATMENT FACILITIES HEATING
ENERGY PROTECTIVE GAS COMPRESSED AIR
TELECOMMUNICATIONS ACID STORAGE etc. AREA
RAILWAY WAREHOUSING ADDITIONAL SERVICE
CHEREPOVETS PLANT
OREL PLANT
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Advantages for investors
FOR FOUNDATION OF PRODUCTION ON THE BASIS OF
INDUSTRIAL CENTERS
The existing infrastructure allows to reduce the
cost and terms of projects realization
Investments into infrastructure by the
proprietors give additional economical benefit
for investor Cooperation with a large
industrial company guarantees stability and
reliability of business and interaction on high
level of business-culture development Synergies
due to enlarging the technological chains of
Severstal-metiz and manufactures, comprised
into Industrial centers Favourable investment
climate in the regions Support by the
administration in attraction of foreign and
domestic investors Experience of JSC
Severstal-metiz in realization of joint
investment projects
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Contact person Tatyana Nechaeva manager of
property direction tel. [phone]
fax [phone] e-mailnecha
eva_at_severstalmetiz.com
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