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Severstal’s Mordashov becomes worldsteel’s new chairman

Wednesday, 10 October 2012 10:44:18 (GMT+3)   |  

At the World Steel Association's (worldsteel) 46th annual meeting held in New Delhi on October 10, worldsteel announced its new officers and members of its board of directors. Accordingly, Alexey Mordashov, general director of the Russian steelmaker Severstal, will hold office as the new chairman of the worldsteel board for one year until October 2013. Mr. Mordashov thus takes over the chairmanship from worldsteel's first Chinese chairman Xiaogang Zhang, president of Anshan Iron and Steel Group.
 
After a meeting on the first day of the 46th annual conference, the worldsteel board of directors also named its new vice chairmen as Xiaogang Zhang and Joon-Yang Chung, who is chairman and CEO of South Korean steel producer POSCO. John Surma, chairman and CEO of US Steel Corp., was named as treasurer.
 
On behalf of the board of directors, worldsteel director general Edwin Bosson said, "We are very pleased to see the continued growing membership from emerging countries and regional associations and institutions. Their participation in the activities of the global steel industry is particularly important at a time when economic and environmental challenges require the industry's collective efforts."
 
Answering reporters' questions, new worldsteel chairman Alexey Mordashov underlined the importance of the rapidly growing steel industries of the BRIC countries. Regarding India, the host country of the meeting, Mr. Mordashow said that India is a large country full of opportunities, with huge steel demand potential, though still experiencing some difficulties in terms of legislation. Regarding Severstal's investment plans in India, Mordashov told reporters that it is good to have a local partner in India, adding that some issues with Indian state-owned miner NMDC still prevail, including ownership structure.
 
The previous chairman of worldsteel, Xiaogang Zhang, stated that the Chinese economy has witnessed some slowdown this year, with prices becoming lower, as in the past decade the Chinese economy has developed so quickly that an overcapacity problem has emerged, which should result in closure of uncompetitive plants. Mr. Zhang also said that the Chinese steel economy will become more stable in the first quarter of next year and that prices may increase slightly.

Worldsteel represents approximately 170 steel producers (including 17 of the world's 20 largest steel companies), national and regional steel industry associations, and steel research institutes. worldsteel members represent around 85 percent of world steel production.