25 Jan 2010 12:34
25 January 2010
Severstal North America Update
OAO Severstal (LSE: SVST; RTS: CHMF), one of the world's leading steel and mining companies, with key assets in Russia, the US and Europe, today announces that as part of its North American 2010 operating plan certain facilities will be restarted that had been idled previously as a result of weak market conditions. This follows an improving trading performance, as reported with the Q3 results announced on 19th 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. In addition, Severstal North America's Mountain State Carbon coke making subsidiary in Follansbee will ramp up to full production by the end of January 2010. As previously announced, the Severstal Wheeling coating lines will return to service in late January 2010. Severstal Wheeling cold rolling complex returned to operation in December 2009. 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.
Sergei A. Kuznetsov, Chief Executive Officer of Severstal North America, said: «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. 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."
While the market outlook in North America remains fragile, the management is confident that the improving trading environment warrants the restart of these facilitates, and these actions demonstrate the Group's long-term commitment to this important market.
For further information:
Severstal
Dmitry Druzhinin, Investor Relations
Olga Antonova, Public Relations
+7 495 926 7766
Hudson Sandler
Andrew Hayes/Jessica Rouleau/Maria Ignatova
+44 (0)20 7796 4133
About Severstal North America:
Severstal North America is the fourth largest steelmaker in the United States and specializes in the full range of the highest quality light flat rolled products. Fully integrated operations are located in Michigan, Maryland, Ohio and West Virginia. A new state-of-the-art electric arc furnace operation in Mississippi serves the growing demand for steel in the south-eastern United States. Severstal North America also has several joint ventures for the highest quality coated products.
About OAO Severstal:
OAO Severstal is an international metals and mining company with a listing on the Russian Trading System, Moscow Interbank Currency Exchange and the London Stock Exchange. Incorporated in 1993, the company focuses on high value added and unique niche products and operates high-quality assets in Russia, North America and Europe.