SeverStal Confirms Discussions with SeverCorr Management Team
12/13/2007 - SeverStal confirms that it is in discussions with the senior management team at SeverCorr regarding the new company’s ownership structure.
SeverStal has confirmed that it is in discussions with the senior management team at SeverCorr regarding the ownership structure of the next-generation SeverCorr steel mill located in Columbus, Miss.
Discussions between the two sides are ongoing and an agreement is expected to be reached shortly. Further details will be provided at that time.
SeverStal recently announced plans to consolidate SeverCorr, after which it will own 75% of the business. The remaining shares are currently held by the SeverCorr management team and other strategic investors.
According to SeverStal, SeverStal and the SeverCorr management team, which is led by steel industry veteran John Correnti, are dedicated to the continuing success of the mill and remain committed to employees, customers, the Golden Triangle region, and the state of Mississippi. The company also said that operations at SeverCorr would not be impacted by this agreement as the mill continues its successful production ramp-up.
SeverCorr recently started up complete production at its new steel mill, just two years after breaking ground. That two years saw the installation and startup of its
- Pickling line in Feb 2007
- Five-stand tandem cold mill in June 2007
- EAF meltshop and hot rolling mill in August 2007
Plans for the Phase II expansion are to continue moving forward, said SeverStal.
Incorporated in 1993, OAO SeverStal is an international steel producer focused on high-value-added and unique niche products. The company has a successful track record of acquiring and integrating high-quality assets in North America and Europe. SeverStal also owns mining assets in Russia, thus securing its own supply of raw materials. In 2006, SeverStal produced 17.6 million tonnes of steel and had revenues of $12.4 billion, PBT of $1.8 billion, and EPS of $1.27.
