Scrutiny grows against US DOE loan to Severstal

Tuesday, 08 November 2011

Two US Republican Senators, Dan Coats and Pat Toomey, have sent a letter to the US Department of Energy (DOE) questioning the $730 loan they offered Severstal North America earlier this year for its production of advanced high strength steel's (AHSS) for the automotive industry. President Obama has issued new fuel economy guidelines earlier this year that will require cars to be more lightweight, and thus will need lighter steel.

The two Senators have joined California Representative Darrell Issa in questioning the decision-making process that led the DOE to approve the loan. Issa insisted that the steelmaker had ample funds for its AHSS upgrades, while Toomey and Coats claim that there is already "substantial excess capacity today" of the AHSS and HDG AHSS, and want clarification as to why a $730 million federal loan was warranted in the first place.

Tags: coated , hrc , crc , galvanized , USA , Severstal , flats , North America , steelmaking , production

sourced Steel Orbis

Severstal NA launches new cold rolling line at Michigan mill

Friday, 19 August

Dearborn, Michigan-based steelmaker Severstal North America announced Thursday that it has successfully launched its new five-stand, six-high 72'' wide coupled pickle line tandem cold mill (PLTCM) at its steel mill in Dearborn, Michigan. The $450 facility is expected to ramp up to full capacity of 2.1 million net tons within six months.

The launch of the PLTCM is complemented by the construction and impending start-up of a $285-million hot-dipped galvanizing line in the same production complex in Dearborn. The new coating line will be targeting critically exposed applications for automotive customers and other critical cold roll consuming manufacturers. It is currently nearing completion with a scheduled launch in December of 2011.

Sergei Kuznetsov, Chief Executive Officer, Severstal North America, said, "The launch of our new cold rolling complex is a key component in our goal of becoming one of the world's most efficient and advanced steel producers. The new equipment will enable us to offer products of superior quality and provide exceptional service to our customers, as well as produce the next generation of advanced high strength steels (AHSS) for automotive applications."

(sourced steelorbis)

Severstal announces USD 2 billion investment program for 2011

Tuesday, 22 Feb 2011

OAO Severstal one of the world leading integrated steel and mining companies announces a target USD 2 billion capital investment program for the current financial year. Severstal will continue to improve operating efficiency, modernize its operational facilities and ensure that the Company maintains industry leading standards of health and safety.

In 2011 the total amount of investment at Severstal Russian Steel will be approximately USD 940 million around a 73% increase on 2010 and will include the following key projects: the continued construction of a mini-mill in Balakovo in the Saratov Region, the renovation of the No 7 coke oven battery, the modernization of the No 5 blast furnace and the construction of a second polymer coating line in Cherepovets and the large-scale IT projects.

In 2011 the total amount of investment at Severstal Resources will be approximately USD 650 million around a 53% increase on 2010 and will include a project to modernize production equipment across the division’s iron ore mills and coalmines, the completion of a thermoelectric power station burning coalmine methane in Vorkuta, an exploration of the Putu iron ore deposit in Liberia, the continued development of the division’s gold mining assets and a coalmine at PBS Coals.

In 2011 the total amount of investment at Severstal North America will be approximately USD 465 million around a 69% increase over 2010, and will include the construction and commissioning and start-up of the 2nd Electric Arc Furnace, Continuous Caster, Tunnel Furnace, Pickle line and the 2nd Hot Dip Galvanizing line at Severstal Columbus, new Cold Rolling Complex and Hot Dip Galvanizing line at Severstal Dearborn.

Overall, the level of CAPEX represents an approximately 48% increase over the level for 2010.

Mr Alexei Kulichenko CFO of Severstal commented that “In 2011 Severstal will continue to make investments across its businesses in order to enhance our position as a market leader in the production of high added value products, improve our operational efficiency and reduce costs. In Russia and CIS, steel use is estimated to increase by approximately 8% in 2011.”