| Return to Steel News Headlines| Print This Page |

SeverStal North America
Assumes Cliffs Pellet Contract

Feb. 3, 2004 — Cleveland-Cliffs Inc. announced that as part of the acquisition of the assets of Rouge Industries, SeverStal North America, Inc. has assumed Cliffs' pellet sales contract with Rouge with minimal modifications. The contract with Rouge provided that Cliffs would be the company's sole supplier of iron ore pellets through 2012. Cliffs sold 3.0 million tons of pellets to Rouge in 2003.

On October 23, 2003, Rouge filed for Chapter 11 bankruptcy protection, and on January 30, 2004, sold substantially all of its assets to SeverStal North America. SeverStal North America is a U.S. based affiliate of OAO SeverStal, Russia's second largest steel producer.

John S. Brinzo, Cliffs' Chairman and CEO, said, "Cliffs has had a long and valued relationship with Rouge. We congratulate SeverStal on its successful acquisition of the Rouge assets. We look forward to building on our relationship with SeverStal and are very pleased to continue to be the company's exclusive pellet supplier."

Cleveland-Cliffs, headquartered in Cleveland, Ohio, is the largest producer of iron ore pellets in North America, and sells the majority of its pellets to integrated steel companies in North America and Canada. The company operates six iron ore mines located in Michigan, Minnesota and Eastern Canada.

Close Window