IRON AND STEEL INDUSTRY - Invest in Russia,...
Transcript of IRON AND STEEL INDUSTRY - Invest in Russia,...
IRON AND STEEL INDUSTRY:FACTS AND FIGURES
2014
ABOUT THE RUSSIAN DIRECT INVESTMENT FUND
The Russian Direct Investment Fund is a $10 billion fund established to make equity investments primarily in the Russian economy.
RDIF was created in 2011 under the leadership of the President and Prime Minister of Russia to co-invest alongside top global investors, acting as a catalyst for direct investment in Russia. RDIF together with its co-investors invested and committed over $7 billion for this purpose, of which RDIF alone invested $1.3 billion and over $6 billion came from the leading international co-investment partners.
RDIF also attracted over $15 billion of foreign capital into the Russian economy through long-term strategic partnerships.
RUSSIA IN THE GLOBAL IRON AND STEEL INDUSTRY
I
6 WWW.INVESTINRUSSIA.COM
RUSSIA IN THE GLOBAL IRON AND STEEL INDUSTRY
RUSSIA HOLDS THIRD PLACE IN THE WORLD IN TERMS OF IRON ORE
* Source: USGS data
1.1
17
1. Australia
16
2. Brazil
5.2
5. India
14
3. Russia
7.2
4. China
World reserves of iron ore2013, bln of tonnes, by iron content*
WWW.RDIF.RU 7
1.2 RUSSIA HOLDS FIFTH PLACE IN THE WORLD IN TERMS OF IRON ORE PRODUCTION VOLUMES
* Source: USGS data
1,320
1. China
530
2. Australia
150
4. India
102
5. Russia
398
3. Brazil
Production of iron ore2013, mln tonnes*
8 WWW.INVESTINRUSSIA.COM
RUSSIA IN THE GLOBAL IRON AND STEEL INDUSTRY
RUSSIA PRODUCES MORE THAN 4% OF THE WORLD’S STEEL
1.3
Global steel production, leading countries2013, mln tonnes*
1102. Japan
7831. China
804. India
873. USA
69
5. Russia
* Source: World Steel Association
WWW.RDIF.RU 9
1.4 TOP 4 RUSSIAN COMPANIES PROVIDE MORE THAN 3.5% OF WORLD STEEL PRODUCTION
Steel production by the world’s largest companies2013, mln tonnes*
96.11. ArcelorMittal
Luxembourg
50.12. Nippon Steel &
Sumitomo Metal
CorporationJapan
45.83. Hebei Steel
GroupChina
43.94. Baosteel
GroupChina
39.35. Wuhan
Steel GroupChina
16.1
20. Evraz GroupRussia
15.7
22. SeverstalRussia
15.5
23. NLMKRussia
11.9
29. MMKRussia
10 WWW.INVESTINRUSSIA.COM
14.6Metalloinvest
Russia
1.5FERREXPO
Ukraine
1.3ENRC Kazakhstan
3.0BHP BILLITON
Australia
2.8RIO TINTO Australia
2.2FMG Australia
3.2CLIFFS NATURAL
RESOURCES USA
15.1Vale Brazil
0.8KUMBA
South Africa
RUSSIA IN THE GLOBAL IRON AND STEEL INDUSTRY
METALLOINVEST IS THE SECOND LARGEST COMPANY IN THE WORLD IN TERMS OF ORE RESERVES2013, bln tonnes
1.5
WWW.RDIF.RU 11
1.6 CJS TMK: A WORLD LEADER IN STEEL PIPE PRODUCTION
2013, mln tonnes
4.3ТМКRussia
4.0Tianjin Group
China
3.9Tenaris
Argentina
3.0TPCOChina
2.1Valourec
France
2.0Baosteel
China
1.9Sumitomo
Japan
1.75CTRPRussia
1.6OMCRussia
1.4Mittal Steel
UK
RUSSIAN IRON AND STEEL INDUSTRY: CURRENT ISSUES AND TRENDS
II
14 WWW.INVESTINRUSSIA.COM
IRON ORE EXTRACTION IN RUSSIA AND GLOBALLY2009-2013, mln tonnes*
2.1
RUSSIAN IRON AND STEEL INDUSTRY: CURRENT ISSUES AND TRENDS
2,24092
2,590101
2,940100
2,930105
2,950102
in Russia
* Source: USGS data
globally — Russia’s share of global extraction volumes, %%
2013
3.4
2012
3.5
2011
3.4
2010
3.8
2009
4.1
WWW.RDIF.RU 15
2.2 FERROUS METAL PRODUCTION IN RUSSIA
2011
2012
2013
67,103
70,591
69,056
Steelmaking2011-2013, thousand tonnes
2011
2012
2013
10,017
9,700
10,050
Steel pipe production2011-2013, thousand tonnes
2011
2012
2013
57,378
58,933
57,907
Flat-rolled ferrous metal production 2011-2013, thousand tonnes
2011
2012
2013
47,970
50,390
50,010
Pig iron production 2011-2013, thousand tonnes
16 WWW.INVESTINRUSSIA.COM
RUSSIAN IRON EXPORTS2009-2013
2.3
RUSSIAN IRON AND STEEL INDUSTRY: CURRENT ISSUES AND TRENDS
253,2 - Russian exports, thousand tonnes 253,2 - Russian exports, USD mln19.6
28,633 29,176 25,795 27,382 25,33511,813 15,390 17,114 16,688 14,564
2010 2012 20132009 2011
WWW.RDIF.RU 17
2.4 RUSSIAN EXPORTS OF IRON ORE CONCENTRATES AND BLACK METAL PRODUCTS
2013, thousand tonnes
Russian black metals
iron ore concentrate
products from Russian black metals
Kazakhstan
United Kingdom
South Korea
Japan
Indonesia
Saudi Arabia
Turkey
Netherlands
Finland
Mexico
Mongolia
USA China
996
551
368
31
142
48
6,010
773
75
1,3263,291
1,489
565
1191,255
13,056
894
1,262
268
271
GEOGRAPHY AND CORPORATE STRUCTURE
III
20 WWW.INVESTINRUSSIA.COM
IRON ORE DEPOSITS IN RUSSIA RUSSIAN IRON AND STEEL INDUSTRY: CORPORATE STRUCTURE
GEOGR APHY AND CORPOR ATE STRUCTURE
< 5 5-20 20-70 > 70
3.1
Extraction, mln. tonnes
Belgorod Region
KurskRegion
Murmansk RegionRepublic of Karelia
10
6 1211
5
4
3
2
1 9
78
Kemerovo Region
Krasnoyarsk KraiSverdlovskRegion
Jewish Autonomous Region
Irkutsk Region
Chelyabinsk Region
Republic of Bashkortostan Amur Region
WWW.RDIF.RU 21
IRON ORE DEPOSITS IN RUSSIA RUSSIAN IRON AND STEEL INDUSTRY: CORPORATE STRUCTURE
Kursk Region Murmansk Region
Belgorod Region Kemerovo Region
Belgorod Region Republic of Karelia
Belgorod Region Irkutsk Region
Belgorod Region Sverdlovsk Region
Belgorod Region Jewish Autonomous Region
Mikhailovsky GOK Kovdorsky GOK
Lebedinsky GOK Evrazruda
Stoilensky GOK Karelsky Okatysh
Magnitogorsk Iron and Steel Works Korshunovsky GOK
Kombinat KMA ore Kachkanarsky GOK Vanady
Metal-Group OJSC Kimkano-Sutarsky GOK
1 7
4 10
2 8
5 11
3 9
6 12
3.2
22 WWW.INVESTINRUSSIA.COM
RUSSIAN IRON AND STEEL INDUSTRY: LEADING COMPANIES
OJSC Mikhailovskiy GOK OKSC Lebedinskiy GOK
OJSC Karelskiy Okatysh OJSC Olkon
OJSC Evraz KGOK OJSC Evraz VGOK OJSC Evraz Ruda
OJSC Kovdorskiy GOK
OJSC Uralskaya Stal’ Oskolskiy MK
Cherepovetskiy MK
Nizhnetagilskiy MK Kuznetskiy MK Zapadno-Sibirskiy MK
HC METALLOINVEST
OJSK Severstal
Evraz Group S.A.
OJSC MHK Evrohim
1
2
4
3
Mining companies
Mining companies
Mining companies
Mining companies
Refineries
Refineries
Refineries
GEOGR APHY AND CORPOR ATE STRUCTURE
3.3
WWW.RDIF.RU 23
OJSC Korshunovskiy GOK
OJSC Stoilenskiy GOK
OJSC Kombinat KMA ruda
Chelyabinskiy MK
Novolipetskiy MK
OJSC Tulachermet
Magnitogorsk MK
OJSC Mechel
OJSC NLMK
HK Promyshlenno-Metallurgicheskiy Holding
OLSC MMK
5
6
8
7
Mining companies
Mining companies
Mining companies
Refineries
Refineries
Refineries
Refineries
24 WWW.INVESTINRUSSIA.COM
HC METALLOINVEST: LEADING IRON ORE PRODUCER IN RUSSIA AND CIS
GEOGR APHY AND CORPOR ATE STRUCTURE
Key financial indicators: RevenueUSD mln
Key financial indicators: EBITDAUSD mln H
C M
ETA
LLO
INV
EST 9,919 8,194 7,324
2011 2012 2013
3,873 2,553 2,240 2011 2012 2013
3.4
WWW.RDIF.RU 25
HC METALLOINVEST: KEY PRODUCTION INDICATORS 2011-2013
Steel productionmln tonnes
Iron ore production(Concentrate and sinter ore), mln tonnes
HBI/DRI productionmln tonnes
Pig iron production mln tonnes
2011
2011 2011
2011
2012
2012 2012
2012
2013
2013 2013
201338.4
5.3 4.7
2.2
40.1
5.2 5.8
2.5
39.8
5.2 5.6
2.1
26 WWW.INVESTINRUSSIA.COM
EVRAZ GROUP SA: LEADING STEEL PRODUCER IN RUSSIA2011-2013, thousand tonnes
GEOGR APHY AND CORPOR ATE STRUCTURE
Steel Railway products Tubular products
2011
2012
2013 16,109
16,773
15,933
2011
2012
2013 927
848
872
2011
2012
2013 1,903
2,055
1,801
3.5
EVR
AZ
GR
OU
P SA
WWW.RDIF.RU 27
Construction products Flat-rolled products Other steel products
EVRAZ GROUP SA: KEY PRODUCTION INDICATORS2011-2013, thousand tonnes
2011
2012
2013 5,186
5,257
5,208
2011
2012
2013 706
823
696
2011
2012
2013 2,108
2,707
2,466
28 WWW.INVESTINRUSSIA.COM
EVRAZ GROUP SA: PEER COMPARSION2013
GEOGR APHY AND CORPOR ATE STRUCTURE
Rank Company Name Sales USD mln
Market Cap USD mln
Location
9 Kobe Steel Ltd. 17,675 5,827 Japan
10 United States Steel Corp. 17,424 5,214 United States
11 Shanxi Taigang Stainless Steel Co. Ltd. 17,341 4,000 China
12 Gerdau SA 16,878 6,841 Brazil
13 Metalúrgica Gerdau SA 16,878 1,963 Brazil
14 Voestalpine AG 15,460 7,428 Austria
15 EVRAZ Plc 15,264 3,623 Russian Federation
16 Wuhan Iron & Steel Co. Ltd. 14,791 4,490 China
17 Severstal OAO 13,311 7,926 Russian Federation
18 Hyundai Steel Co. 12,817 6,993 Korea Republic
EVR
AZ
GR
OU
P SA
WWW.RDIF.RU 29
EVRAZ GROUP SA: KEY FINANCIAL INDICATORS 2011-2013, USD mln
RevenueUSD mln
EBITDAUSD mln
2011
2012
2013 16,400
14,411
14,726
2011
2012
2013 2,898
1,821
2,012
30 WWW.INVESTINRUSSIA.COM
TMK: LEADING STEEL PIPES MANUFACTURER IN RUSSIA AND GLOBALLY
GEOGR APHY AND CORPOR ATE STRUCTURE
RevenueUSD mln
Key financial indicators2011-2013
EBITDA USD mln
2011
2012
2013 6,432
6,754
6,688
2011
2012
2013 952
1,047
1,028
3.6
ТМК
WWW.RDIF.RU 31
TMK: KEY PRODUCTION INDICATORS
Salesthousand tonnes
Shipments of tubular productsthousand tonnes
2011
2012
2013 1,8662,422
1,8432,342
1,7432,495
2011
2012
2013 4,313
4,232
4,220
Seamless Welded
32 WWW.INVESTINRUSSIA.COM
ТМК: PEER COMPARSION2013
GEOGR APHY AND CORPOR ATE STRUCTURE
Rank Company Name Sales USD mln
Market Cap USD mln
Location
5 BlueScope Steel Ltd. 7,528 2,325 Australia
6 Steel Dynamics Inc. 7,372 5,642 United States
7 TMK JSC 6,431 1,385 Russian Federation
8 China Oriental Group Co. Ltd. 5,291 438.5 Hong Kong
9 Bekaert SA 4,378 2,057 Belgium
10 Dongbu Steel Co. Ltd. 3,581 94.8 Korea Republic
11 Ryerson Holding Corp. 3,460 359.4 United States
12 Ezz Steel 3,061 1,292 Egypt
13 Chongqing Iron & Steel Co. Ltd. 2,857 2,201 China
14 Lingyuan Iron & Steel Co. Ltd. 2,584 572.3 China
ТМК
WWW.RDIF.RU 33
NOTES
34 WWW.INVESTINRUSSIA.COM
INVESTIN RUSSIA
RDIF PRESENTS
PLATFORMINVEST IN RUSSIA
WWW.RDIF.RU 35
Key facts about the Russian economy. Russia’s global ranking in different areas.
Use this link to learn more about the largest Rus-sian companies.
Stay connected with investment promotion agencies and government authorities in any region in Russia.
COMPARE REGIONSEvery region talks about their pro-business invest-ment climate. We gather evidence on the actual state of affairs.
SECTORSGain access to the partners’ reports, guides and other materials about key industries.
REGION PROFILESSay YES to your success in Russia. Our team of regional professionals provide you with the exper-tise and up to date information you need in order to make an informed investment decision with regards to any specific region.
Get a historical perspective on top international companies which have made specific regions in Russia their home and see their profiles.
Browse our library of Investment News and Research, companies’ case studies, guides, industry reports and comments from investment profession-als and the business community around the world.
Find information about publicly announced invest-ments within Russian regions.
THEY CHOOSE RUSSIASuccess stories of foreign investors from multiple Russian regions. Track inward strategic investment across Russia.
PROJECT DATABASEThe Project Database is the central storehouse of information on regional projects, verified by the Russian Direct Investment Fund professionals.
SITE SELECTION TOOLSThe best way to find the best properties (greenfield and brownfield).
The easy-to-use property search tool allows you to find a specific site by entering Size, Other Features and Location Filters. Compare selected properties side-by-side, download individual property sheets and see your results in a basic or detailed list view, or on a map.
WHY RUSSIA
TOP RUSSIA
OUR PARTNERS
WHERE TO INVEST
KNOWLEDGE HUB & NEWS
INVESTMENT ANNOUNCEMENT
INVESTMENT TOOLS
SITE MAP
Presnenskaya Nab., 8/1Moscow, Russia, 123317Tel.: +7 (495) 644-34-14Fax: +7 (495) 644-34-13
www.investinrussia.com