Severstal reports on the Safety Program at plants

The “Severstal Resources” division and CherMK (Severstal Russian Steel) spent RUR 1,088.1 million on health and industrial safety activities in 2008

Severstal’s Russian Steel division reported over 250 actions which have been undertaken at the Cherepovets Steel Mill (CherMK). RUR 330.1 mln (appr. $10 mln) were spent, in order to improve industrial and fire safety as well as to provide healthy labor conditions in the work place. These actions resulted in an overall reduction of job-related incidents by 37%, and fire hazardous incidents by 20% compared to 2007. Micro-injuries cases at Izhora Pipe Mill were reduced by 25% compared to 2007. At SMC-Kolpino no incidents were reported involving SMC staff or contractors’ over the period from 2007 to 2008.

Severstal’s Resources division also reported a substantial reduction in injury rates. Occupational injuries were reduced by 32% in 2008 compared to 2007. Over the past three years, the annual injury rate was reduced by 30-40% due to the implementation of the comprehensive program “Safety for Everybody”. This program implements the DuPont methodology, at the core of which lies the need for corporate culture development, which raises overall awareness amongst all employees of health and safety. Since 2005 the number of occupational injuries fell by 80%

“Severstal-Resources” spent RUR 758 million on improving the health and safety amongst employees. This number includes RUR 518 mln spent at OAO “Vorkutaugol” mines.