Severstal North America to Restart Facilities
01/26/2010 - As part of its North American 2010 operating plan, OAO Severstal plans to restart certain facilities that had been previously idled. Severstal Warren is scheduled to return to service its blast furnace, steelmaking, and hot strip mill facilities late in the first quarter of 2010.
As part of its North American 2010 operating plan, OAO Severstal plans to restart certain facilities that had been previously idled as a result of weak market conditions. This move follows an improvement in trading performance, as reported with the Q3 results in November 2009.
Severstal Warren, a fully integrated steel plant, is scheduled to return to service its blast furnace, steelmaking, and hot strip mill facilities late in the first quarter of 2010. The number of employees returning to the Warren facility is currently being discussed with the United Steel Workers, with which the company is seeking a new contract to cover all of Severstal North America’s steelworker-represented facilities.
Severstal North America’s Mountain State Carbon coke making subsidiary in Follansbee will also ramp up to full production by the end of January 2010. The company previously announced that the Severstal Wheeling coating lines will return to service in late January 2010. Severstal Wheeling cold rolling complex returned to operation in December 2009.
“Our North American strategy remains to be a long-term market leader, serving domestic and export customers with light flat-rolled steel from five plants,” said Sergei A. Kuznetsov, Chief Executive Officer of Severstal North America. “Severstal North America anticipates an improving market for its products over 2010, and we are encouraged by the support we are receiving from all constituencies to resume operations at Warren.”
Despite a “fragile” market outlook in North America, the company says that management is confident that the improving trading environment warrants the restart of these facilitates, and that these actions demonstrate the group’s long-term commitment to this important market.
OAO Severstal is one of the world’s leading steel and mining companies, with key assets in Russia, the U.S., and Europe.
