27 March 2008
Russian steel firm deals for Baltimore mill
Russian steel company OAO Severstal will pay $810 million to pick up Baltimore’s Sparrows Point steel from ArcelorMittal.
The purchase will make Severstal the fourth largest steel producer in the U.S. Its North American division also includes a mill and other facilities in the Detroit area and in Columbus, Miss.
Fully integrated, Sparrows Point has a capacity of 3.9 million tons of crude steel. It is the only integrated producer of flat rolled steel on east coast of the U.S.
ArcelorMittal, based in Luxembourg, agreed in February 2007 to sell Sparrows Point to resolve U.S. Justice Department antitrust concerns about production of tin-plated steel. ArcelorMittal, the world’s largest steelmaker, formed via a merger of Mittal Steel Co. NV of the Netherlands and Arcelor SA of Luxembourg.
“With Sparrows Point, Severstal brings into its U.S. portfolio an asset with significant existing value as well as unlocked growth potential,” said Chief Executive Lexei Modashov.
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