Severstal North America to Receive $730 Million Loan from DOE
07/14/2011 - Severstal North America has received a conditional commitment for a $730 million loan from the U.S. Department of Energy.
Severstal North America has received a conditional commitment for a $730 million loan from the U.S. Department of Energy.
The company plans to use proceeds from the loan to design, manufacture, and construct its finishing facilities in Dearborn, Mich., which will produce next-generation advanced high strength steels (AHSS) for automotive applications. AHSS is becoming a critical component for Advanced Technology Vehicle manufacturers as they seek to meet U.S. Government fuel efficiency goals and crash standards.
Upon completion of the modernization projects, Severstal's Dearborn facilities will include a 2.1 million ton per year coupled pickle line tandem cold rolling mill, a 0.5 million ton per year hot dip galvanizing line, and a 0.5 million ton per year continuous annealing line, all with 72-inch width capability.
"We are grateful to have received this conditional commitment from the U.S. Department of Energy's Loan Programs Office," said Sergei Kuznetsov, CEO, Severstal North America. “The loan will help advance U.S. manufacturing, create new jobs and support energy conservation efforts. It will allow Severstal North America to build state-of-the-art facilities to produce a broad range of advanced high strength steels for future generations of lighter, more fuel efficient vehicles.”
The company said its AHSS investment will create an estimated 2,500 construction jobs, 260 permanent manufacturing jobs, and enable the retention of 1,400 existing manufacturing jobs. The new facilities, built on a brownfield site in Dearborn, also will provide environmental benefits by enabling reduction of petroleum-based fuels consumption and carbon dioxide emissions.
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 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.
