Alexey Mordashov (Алексей Мордашов) started building his fortune while working in a Cherepovetskly Metallurgical Plant, now called Severstal, when the old director advised him to buy up the shares of the plant. He heeded the director’s advice and bought most of Severstal’s shares from workers. He continued buying shares of other steel mills to expand Severstal. In 2013, Severstal produced 15.7 million tons of steel making it the largest steel producer with its headquarters in Russia. It produced revenue of $14.1 billion in 2012.
Mordashov also became an active investor across many industries including car makers, coal, ports, transportation, energy, telecomm and more throughout the world. At the peek of his fortune, in 2008, he had a net worth of $24.5 billion making him the 18th richest person in the world. In July 2014, Forbes estimates his fortune to be worth $10.5 billion making him the 119th wealthiest person in the world and the 12th richest person in Russia.
Early Life and Education
Alexey Mordashov was born in Cherepovets, Vologda Oblast, Russia, in 1965. His parents both worked in a mill. He earned a degree in Accounting from Leningrad Engineering and Economics Institute known as ENGECON. In 2001, he received an MBA from Northumbri University, in England.
From Accountant to General Director of Severstal
In 1988, Alexey Mordashov started working in the steel plant in his home town as an accountant. When his company privatized and became the Severstal joint stock company, he bought up its shares and those of other steel companies. In 1996, Mordashov became the General Director of Severstal.
Even though Mordashov has acquired major industrial facilities throughout Russia, Ukraine, Kazakhstan, France, Italy, America, and Africa, Severstal’s headquarters remains in Cherepovets. Severstal is among the twenty five largest producers of steel in the world. Severstal competes with Russian steel producers like Alexander Abramov and Alexander Frolov’s Evraz, Vladimir Lisin and Alexey Lapshin’s Novolipetsk and Viktor Rashnikov’s Magnitogorsk Iron and Steel Works.
Mordashov built Severstal into a conglomerate with holdings in Severstal Air, an airline, Vnukovo Moscow Airport, Cherepovets Airport, what became Nordgold, PBS Coals and more. Nordgold itself has revenues of over $1 billion. It was rumored that Mordashov’s Nordgold was interested in buying part of Suleyman Kerimov’s Polymetals but this never happened.
Severstal Group is Alexey Mordashov’s investment arm. In 2013, Mordashov bought up half of Tele2 Russia, the fourth largest cell phone company, from Yuri Kovalchuk. Mordashov is the Chairman of the Board of Nordgold and Power Machines, a large electricity machine maker. Severstal grouop has many their significant holdings.
Philanthropy and Public Service
Alexey Mordashov is an avid supporter of the arts and sports. He is a sponsor of Mariinsky and Bolshoi Theaters, Tretyakov Gallery, the Russian Museum, the Museum of Frescoes by Dionysius, the Moscow Film Festival and The Andriaka Water Color School. Mordashov also helps homeless children through the Road Back Home Charity.
Mordashov is on the board of many entrepreneurial organizations that contribute to the Russian economy and business planning. He is the Vice Chairman of the World Steel Organization, the Partnership of Russian Steel. Mordashov is the co-chairman of the Trade Taskforce of the Business 20 of Group of Twenty (G20). He is a member of the Russian German Work Group, The Russian Union of Industrialists and Entrepreneurs (RSPP), EU Russia Business Cooperation Council and the Atlantic Council President’s International Advisory Board and the Russian Federation’s Entrepreneurial Council.
Alexey Mordashov helped fund more than twenty stadiums for hockey and soccer and athletic competitions. Mordashov owns Severstal Cherepovets, a hockey team, and a volley ball team.