Severstal North America Reports Favorable Ruling in Jefferson Court Case
09/16/2011 - Severstal has provided an update regarding the lawsuit between Severstal Columbus, LLC and Jefferson Iron and Metal Brokerage, Inc. regarding interpretation of their scrap procurement contract.
In response to recent press coverage, Severstal has provided an update regarding the lawsuit between Severstal Columbus, LLC and Jefferson Iron and Metal Brokerage, Inc. The lawsuit relates to interpretation of their scrap procurement contract.
According to the Order issued on September 12, 2011, by the Circuit Court of Lowndes County, Miss., “Severstal may purchase scrap directly from other vendors as long as the Requirement of the first 30,000 gross tons per month is purchased from Jefferson Iron as provided in the contract.”
According to Severstal, the Court’s understanding of the parties’ rights and obligations to purchase and sell scrap pursuant to the contract agrees precisely with the company’s stated position. Severstal said it is confident that the latest ruling will help in allaying any of its direct scrap vendors’ concerns.
Severstal North America, a major steelmaker in the United States, specializes in the full range of high quality light flat rolled products. Fully integrated operations and corporate headquarters are located in Dearborn, Mich., and a new state-of-the-art electric arc furnace operation in Columbus, Miss., 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 Mountain State Carbon, a jointly owned coke-making facility. Severstal North America is a wholly-owned subsidiary of OAO Severstal, one of the world’s largest vertically integrated steel and mining companies.
