Severstal announces revised production estimates in light of changing global economic conditions

As a result of slower demand for steel products due to recent changes in global economic conditions, OAO Severstal today announced its decision to reduce production at its steel plants in Russia, North America and Europe for the month of October.

In Russia, Severstal will reduce production at its Cherepovets steel plant by approximately 25% for crude steel.

In the United States, Severstal will be adjusting production to balance with customer needs to an aggregate of approximately 30% across its facilities.

In Italy, Severstal is scheduling October production cuts of 30%.

Sergei Kuznetsov, CFO of OAO Severstal, said: “We consider these measures to be prudent management in a time of rapidly changing market conditions. We are maintaining close discussions with our customers to support their near-term requirements. Likewise, the Company is communicating with suppliers so that we can optimize the supply chain and keep all stakeholders informed of production levels.”

Severstal is reviewing its full year guidance as issued with the Company’s 1H08 results and will update the market in due course.