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. 
Contact:
Katya Pruett
+1 (313) 317-9760
yekaterina.pruett@severstalna.com