Alexey Mordashov: Bio, Net worth, Career, Investments
Ranked 48 on
the Forbes 2019 billionaire list, Alexey Mordashov, a Russian business magnate
and investor is the former CEO and majority shareholder at Severstal, a steel,
mining, and energy company. He is a part-owner of the TUI Group owning about
25% of its stakes.
Net worth
$19.7B as of May 27, 2020.
Early Life and Education
Alexey
Alexandrovich Mordashov was born on 26 September 1965 in Cherepovets, Russia.
Like most of his billionaire counterparts, Mordashov’s career path was also
influenced by his parents who were steel mill workers which in turn influenced
his choice of University. He enrolled at the Leningrad Engineering-Economical
Institute University of Northumbria (ENGECON) where he graduated with a degree
in economics. In 2001, he graduated from the Northumbria University, Newcastle
where he bagged an MBA.
Career path
After
graduating from ENGECON, Mordashov secured a job with Cherepovetskiy
Metallurgical Plant, the same steel mill his parents worked. His career kicked
off in 1988 where he worked as a senior economist, and by 1992 he had become
the company’s Financial Officer; the company was made private in the same year.
Mordashov
used the opportunity of owning multiple shares in the company after one of its
early directors had asked him to acquire shares of the company to keep
outsiders out. Moradshov took a good swing at the opportunity by retaining a
good percentage of the shares for himself. He also bought off other workers'
shares in the company, thereby, increasing his stakes in the company. With the
money, he had saved he created two investment funds. In 1996 he was made the
company’s CEO. After his appointment as CEO of Cherepovestiky Metallurgical
Plant, he created the Severstal Group which deals with steel, coal, and mining
operations as an upgrade for the state-owned Cherepovets Iron and Steel. This
happened in the joint-stock company agreement.
In 2002, he
occupied the role of CEO of the new group, Severstal until 2015 when he stepped
down from the position and was elected chairman of the board of directors. It
wasn’t until 2004 that Mordashov expanded the company’s operations beyond the
Russian shores. The company gained access to the U.S. market by acquiring and
investing in American owned/based steel and purchasing companies. The company’s
first acquisition was the Rogue Plant situated at Dearborn which came about as
a deal between the Russian company and the United States Department of Energy
was drawn. The deal was to have Mordashov’s company renovate the steel plants
in Dearborn with a loan worth $370 million; however, the deal was struck out
due to political clashes between both countries. On cancellation of the deal
which only lasted ten years, Mordashov sold off his U.S. investments to the
Renco Group at $2.3 billion.
Severstal
Under the
leadership and management of Mordashov, Severstal has since become the largest
steel manufacturing company in Russia with an employee count of 50,000. Its
industrial facilities can be found in Russia, Ukraine, France, Italy,
Kazakhstan, and some parts of Africa. In 2004, a new unit was launched at the
Severstal Group—the Severstal North America which was in charge of the
company’s business with its steelmaking assets acquired from Rogue Steel
located in Michigan, USA. By 2006, the company was listed on the London Stock
Exchange after becoming public once more prior to its initial privatization as
Cherepovestiky.
The Group
also owns the Severstal Cherepovets, ‘a professional ice hockey club’ and the
Severstal Air Company amongst its other acquisitions and operations.
Investments and acquisitions
Mordashov
invested a total of $3 billion within a space of ten years (2004 – 2014) in two
America owned steel manufacturing plants, Dearborn and Columbus. Currently
owning 25% of the TUI stakes through his S-Group Travel, Mordashov first made
an investment in TUI Travel in 2007 after which he gradually increased his
shares in the company until he became the largest single shareholder. By 2016,
he became a part of the TUI supervisory board. He owned yet another 25% stakes
Siemens’ Power Machines a manufacturer of steam turbines. Mordashov also
co-owns 50% stakes in Tele2, the fourth largest mobile operator in Russia.
Several other investments and acquisitions have also been made via Severstal
which include;
●
The Sevegral joint
venture by Severstal (75%) and Arcelor (25%) – April 2006 (and later acquired
Arcelor’s 25% in 2007)
●
Carrington Wire, British
wire manufacturer- April 2006 (closed in 2010)
●
Lucchini (Severstal
acquired a controlling stake) – October 2016 (and an additional 9% by 2007)
●
Celtic Resources, a gold
mining company – February 2007
●
Aprelkovo and Nrungri
Metallic, gold mines located in Russia - October 2007
●
Sparrows Point, a steel
mill located in Maryland, USA – May 2008
●
Mano River Resources, an
iron ore deposit located in West Africa (controlling stakes) – May 2008
●
Esmark Inc located in
West Virginia, USA – June 2008
●
WCI Steel Mill located in
Ohio, USA – July 2008
●
Radaelli Tecna (acquired
under Severstal Metiz) – August 2008
●
Gruppo Lucchini (acquired
all the shares of the group) – March 2010 (50.8% of Lucchini SpA was sold to a
subsidiary company controlled by Mordashov)
●
Crew Gold – January 2011
Roles and Positions
●
Vice Chairman- World
Steel Association
●
Vice-president- Russian-German
Chamber of Commerce
●
Head- Russian Union of
Industrialists and Entrepreneurs’ Committee on Integration
●
Co-chairman- Northern
Dimension Business Council
●
Co-chairman- Trade as a
Global Driver
●
Member- Russian-German
Workgroup (responsible for economic and finance related issues)
●
Member- Entrepreneurial
Council of the Government of Russian Federation
●
Member- EU Russia
Business Cooperation Council
Awards
●
Order of Honor
●
Order of Alexander Nevsky
●
Order of Merit of the
Italian Republic
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