Severstal invests in advanced materials fund establishes new division focuses on new

Severstal invests in advanced materials fund establishes new division focuses on new

first_imgSeverstal, one of the world’s leading vertically integrated steel and mining companies, is pleased to announce that its subsidiary, Melsonda Holdings Ltd., has invested in Pangaea Ventures Fund IV, LP. Pangaea IV is managed by Pangaea Ventures Ltd., the leading advanced materials venture capital fund in the world. In parallel with this investment, Severstal has established a new corporate division, Severstal Ventures, to develop venture projects involved with new production technologies and materials. This twin approach – investing in high profile funds and working with start-ups directly – will give Severstal access to innovative technology and projects with high impact potential.Andrey Laptev, Director of Business Development and Corporate Venture Projects of Severstal (previously its Head of Corporate Strategy), commented: “Innovative technologies can significantly disrupt the processes, products and business models of global industrial companies. Therefore, it is crucial for businesses to actively monitor breakthrough trends, identify and implement potential opportunities and mitigate any possible risks. This requires a systematic approach. Investments in venture capital funds provide unique access to a vast range of projects. In addition to investment income, we expect to receive value add benefits, mostly through introducing interesting technologies which will enable us to maintain our leading cost position as well as develop unique products. Our focus will be on technologies that are ready for rapid implementation and we will aim to collaborate with these start-up projects at an operational level. This could be done in several ways including, ‘pilots’, licensing agreements and direct investments. We believe that Severstal’s approach is unique to the global steel industry, although it is common in other major industries, such as the energy sector.”Chris Erickson, General Partner of Pangaea Ventures, commented: “Pangaea is pleased that Severstal has invested in Pangaea IV and chosen it as the first venture fund to work with globally. While the steel and mining industry is traditionally quite conservative, Severstal Ventures has an entrepreneurial team that values new technology. We look forward to working with Severstal.”last_img


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