DEARBORN, Mich., March 31, 2011 /PRNewswire/ -- Severstal North America (SNA), a subsidiary of OAO Severstal, announced today that it has successfully completed the sale of its Warren, OH, Wheeling, WV, and Sparrows Point, MD, assets to the Renco Group, Inc. The sale of these assets is a key component of SNA's strategic refocusing, which centers around the development of the company's Dearborn and Columbus facilities, two of the most advanced steel manufacturing and processing sites in North America.
Severstal also announced today the company has accelerated completion dates for some of its planned capital improvements, and confirmed the remainder of the improvements will be finished on schedule.
Severstal's development of the Dearborn plant includes a $740 million modernization program that consists of a new cold rolling complex and galvanizing line targeting critically exposed applications for automotive customers and other original equipment manufacturers. The $550 million expansion project at the Columbus plant will increase annual steel production to 3.4 million tons and double the plant's galvanizing capacity.
Upon completion of the capital improvement programs, combined annual steelmaking capacity will reach 6.0 million tons, cold rolling capacity at Dearborn and Columbus will increase to 3.6 million tons, and galvanizing capacity to 2.4 million tons.
"We are very pleased with the results of our restructuring and thank all our current and former employees, customers, and suppliers for their hard work and support during the transition. North America is one of our key strategic priorities, and we are looking forward to the prospects of growth in the most sophisticated market segments here," said Sergei Kuznetsov, CEO of Severstal North America. "The investments in Dearborn and Columbus are transformational for our company, as they will enable us to offer superior quality products and service. We are accelerating commissioning schedules wherever we can, and we will continue to update our customers on our progress," Kuznetsov continued.
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About Severstal North America:
Severstal North America is a major steelmaker in the United States and specializes in the full range of the high quality light flat rolled products. Fully integrated operations and corporate headquarters are located in Dearborn, Michigan. A new state-of-the-art electric arc furnace operation in Columbus, Mississippi serves the growing demand for steel in the southeastern United States. Severstal North America also has several joint ventures for the high quality, value-added coated products, as well as a jointly owned coke-making facility Mountain State Carbon. Severstal North America is a wholly-owned subsidiary of OAO Severstal, one of the world's leading integrated steel and mining companies.
About Severstal International:
Severstal International is an operating division of OAO Severstal comprising the North American and European segments.
About OAO Severstal:
OAO Severstal is an international steel and mining company with a listing on the Russian Trading System, Moscow Interbank Currency Exchange and the London Stock Exchange. The company focuses on high value added and unique niche products and operates high quality assets in Russia, North America and Europe.
SOURCE Severstal North America