CEO DOSSIER
A self-made billionaire who is quick to contest the title of a Russian business oligarch, Alexey is the main shareholder of Severstal, one of country’s largest steel and mining companies. He has avoided the trappings of wealth despite an estimated net worth of $12.8bn.
early years
Alexey Mordashov was born in 1965 in Cherepovets, Vologda Oblast, Russia. Born to steel-mill worker parents, Alexey has said that his family had coupons for food when he was younger and were only allowed 400g of sausages and 200g of butter each month. Alexey attended the Leningrad Institute of Engineering and Economics where he earned an undergraduate degree.
Following his education, Alexey joined Cherepovets Iron and Steel Complex in 1988 and held various positions for the company's economics bureau, labor organisation, and planning department. He was also senior shop economist before becoming finance director in 1992.
In 1993, the company was privatized by a decree from Russian President Boris Yeltsin, which made Cherepovets Iron and Steel Complex an open joint-stock business called Severstal. Alexey was the company's chief financial officer for three years before becoming CEO in 1996.
As ceo
Alexey started to build an industrial conglomerate by purchasing steel, mining and coal companies during his early years in charge. In 1999 he was the recipient of the Order of Service to the Motherland award.
Alexey became one of Russia's biggest investors after Severstal purchased US steel producer Rouge Industries for $286m in 2004. He said that at the time "steel plants in the U.S. were in worse shape than the Russian plants we renovated. A lot of the technology was 150 years old. They'd suffered from under-investment for many years. People were expecting Rouge to go bankrupt, so there was a lot of anxiety." Commenting on further acquisitions that year, Alexey said: "We don't have any particular aspirations about expanding anywhere specifically, but are keen to examine opportunities as the industry consolidates."
In 2006, Severstal announced plans to acquire a third of French steel conglomerate Arcelor. Alexey said: "I think the new company will aim as soon as realistically possible to reach through mergers and acquisitions an output of 100m tonnes a year." Arcelor's shareholders reacted badly to the proposal, claiming they were denied the right to voice an opinion. Alexey asserted: "If shareholders don't like it [the deal] . . . they can come and vote against it." However Severstal's competitor Mittal Steel eventually secured the deal with Arcelor paying Alexey €140 as compensation for the failed takeover discussions.
The following year it was revealed that Severstal would invest $1bn in the US in a bid to increase output and improve quality. The fund was also part of Alexey's plan to make the company more global following its failure to secure the Arcelor deal.
In 2008, Severstal announced plans to launch a $6bn investment programme in Russia, which included building new plants and doubling output at one factory. At the time Alexey also noted that Russia would become one of the world's most attractive business locations by 2020. “I think that is absolutely realistic, with our strong industrial base, natural resources, and the education of our people, despite the turmoils of last decade,” he said. The same year Severstal also purchased Sparrows Point, an integrated steel mill in Baltimore from ArcelorMittal for $810m.
Despite losses in the first six months of the previous year, Severstal reported an underlying £1.4bn profit in the first half of 2010. Alexey said rising prices had helped the company's financial situation, as had a recovery in the Russian economy.
In April 2012, Alexey said that as a steel company, Severstal was "vulnerable to trends in the world economy, which does not look easy today." The company would go on to post a Q4 loss of $150m, which Alexey attributed to the weak global economy and low demand in Russia's winter months.
Nevertheless, in January 2013, Alexey took part in an interactive Twitter debate in which he said a career in the steel industry was an opportunity "to be in a really international environment, to understand global processes, to participate in changes and to bring innovations."
Away from work
When asked about what he does away from work and how he relaxes, Alexey noted: "I work a lot and have very little spare time. But if I have some, my favourite way to spend it is to go for a walk with my family in the forest, close to nature."
He has an interest in poetry and is said to have recited his favourite work during meetings and interviews.
Alexey is also a keen follower of sports, with Severstal owning the super-league ice hockey team in Cherepovets, sponsors of the Dynamo Mosvow women's volleyball side and the Russian national male chess team. Through the company, Alexey also supports 20 sports facilities in Russia, which include stadiums, ice rings, heated football fields and athletic centres.
With an interest in art, Alexey also contributes to the Bolshoi Theatre, Mariinsky Theatre, Tretyakov Gallery, Russian Museum, Museum of Frescoes by Dionisius, Sergei Andriaka Watercolour School and the Moscow International Film Festival.
Alexey speaks fluent German and English.
In own words
"I will never buy a football team, I have got different hobbies!"