Mumbai: Severstal, Russia's largest steel maker, will split its business into three separate divisions and consider further acquisitions in North America, Europe and Africa.

Severstal, controlled by billionaire Alexei Mordashov, will create separate divisions to focus on its Russian steel business, its international operations and its raw material assets - coal, iron ore and gold - reports quoting senior company executives said.

Severstal, with a market capitalisation of $24.7 billion, expects a leaner, focused structure to improve its competitiveness, and productivity, cut costs and improve profitability.

Severstal, Russia's second-largest steel maker, has expanded into North America and is now among top five US steel makers by capacity.

Severstal, which owns the former Rouge Steel plant in Dearborn, Michigan and jointly owns the SeverCorr venture in Columbus, Mississippi, is acquiring the Sparrows Point mill in Baltimore, Maryland for $810 million. 

The steel major is expanding its Cherepovets plant in Russia and is also building mini-mills elsewhere in the country to serve booming demand from the construction sector. The company plans to invest a total $6 billion in Russia by 2011.

Severstal Resources, the division controlling the company's iron ore, gold and coal mines and exploration projects, is looking at assets in Kazakhstan following its acquisition this year of Celtic Resources, which operates the Suzdal and Zherek gold mines in the central Asian republic.

It is also looking for resource bases in Africa, with focus on West Africa.

The company plans to start producing gold at some of the deposits it has acquired in Siberia and aims to become one of Russia's leading gold miners.