Severstal North America Announces the Dissolution of Its Joint Venture for the Electrogalvanizing Line, Double Eagle Steel
Severstal North America Announces the Dissolution of Its Joint Venture for the Electrogalvanizing Line, Double Eagle Steel Coating Company
DEARBORN, MI -- (Marketwired) -- 07/15/13 -- Severstal North America, one of the largest steel producers in the United States and a subsidiary of Severstal, a global steel and mining company, announced today the decision to dissolve its Dearborn, Mich.-based Double Eagle Steel Coating Company ("Double Eagle") partnership with United States Steel Corporation.
Over the past several years, there has been a significant decline in the market demand for electrogalvanized (EG) products and a shift toward the new hot dip coated technology. After a thorough review of the business trends and conditions by the Board of Directors, the parties mutually concluded that the economic viability of EG production at Double Eagle could no longer be maintained.
"We would like to thank our long-term partner in this joint venture, United States Steel Corporation, for the years of productive and mutually-beneficial cooperation. We would also like to thank all of the customers, employees and the local community for their support through the years," stated Sergei Kuznetsov, CEO, Severstal North America. "As the time has come to end this partnership, we will work harder to meet the demands of our customers and provide the highest-quality of coated advanced high strength steels available on the market. The new products off our existing facilities will deliver all the benefits of our highly skilled workforce, technology and equipment."
Severstal Dearborn launched its new $285-million hot dip galvanizing line (HDGL) last year, featuring advanced technologies with consistent coating thickness and excellent surface texture for exposed and unexposed automotive applications. The company expects to transition from EG product to hot dip galvanized by the first quarter of 2014 and is currently working with the customers to achieve that objective.
About Severstal North America:
Established in 2004, Severstal North America is one of the largest steel producers the United States, specializing in the full range of high quality light flat rolled products. Corporate headquarters and integrated operations are located in Dearborn, Mich. A state -of-the-art electric arc furnace operation in Columbus, Miss. serves the growing demand for steel in the southeastern United States. Over $3 billion in investments have modernized and expanded both facilities. Severstal also has several joint ventures specializing in value-added coated products and coke making. The company serves customers in more than 20 markets, including automotive, appliance, construction, container, pipe and tubing, distribution, converter and service centers. Severstal North America is a wholly-owned subsidiary of OAO Severstal, one of the world's largest vertically integrated steel and mining companies. Visit our website at www.severstalna.com or follow us on Twitter @SeverstalNA.
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