SeverCorr Accelerates Plan for Expansion
04/24/2007 - SeverCorr is accelerating expansion of its Lowndes County, Miss., plant with the installation of a second production line, more than doubling the mill’s capacity to 3.4 million tons per year.
SeverCorr is accelerating expansion of its Lowndes County, Miss., plant with the installation of a second production line, more than doubling the mill’s capacity to 3.4 million tons per year.
The announcement, which comes a year-and-a-half after SeverCorr broke ground at its 1,400-acre greenfield steel mill, is ahead of the company’s original schedule, which had targeted a growth phase to begin two-to-three years following completion of the first phase of construction. However, strategic partners in the organization now believe it is appropriate for the expansion to begin sooner.
“Our investors, partners and government officials are very supportive about the building of America’s next-generation steel mill,” said John Correnti, CEO of SeverCorr. “Their belief in SeverCorr and belief in this project are driving the acceleration of the expansion and we are grateful to have their partnership.”
Alexey Mordashov, CEO of SeverCorr’s strategic partner OAO Severstal said, “Our own focus on growth and value creation can be seen in this commitment to SeverCorr. The expansion of the SeverCorr facility is a positive reflection on all involved.”
Expansion details will follow regulatory approvals and finalization of capital structure and equipment specifications. SeverCorr will work closely with local and state officials through this process to define the expansion’s impact in terms of job creation and economic development.
SeverCorr LLC was formed in 2003 to design, engineer, build and operate a state-of-the-art steel facility to service growing manufacturing opportunities in the Southern United States. In October of 2005, SeverCorr broke ground on a next-generation steel mill near Columbus, Miss. At the completion of its initial phase, the plant will produce 1.5 million tons per year of high-quality steels for use in the automotive, building, agricultural, pipe & tube, and appliance industries. The plant is located on a 1400-acre mega-site, which has been designed to accommodate expanded operations, production partners and related manufacturers onsite.
