Background

Severstal North America is the fourth largest steelmaker in the United States with its headquarters located in Dearborn, Michigan. Severstal North America produces high-quality flat-rolled carbon steel products, including hot rolled, cold rolled, electro-galvanized, hot-dip galvanized, tin and Galvalume®. Major markets include automotive, appliance, construction, container, converter, service center and other industries.

Pursuing its commitment to an exceptional quality product and to the protection of human and environmental health, Severstal North America facilities have earned TS 16949, OHSAS 18001 and ISO 14001 certifications, the international standards for quality, health and safety, and environmental management systems, respectively.

Severstal North America is a wholly owned subsidiary of OAO Severstal, Russia’s largest steelmaker by volume and one of the most global.

To further extend its participation in additional value-added products, Severstal North America has several joint ventures for electrogalvanizing, hot-dipped galvanizing and electrolytic tin. These operations supply the highest quality coated steel products with unparalleled precision to demanding customers. The joint ventures are located in Michigan and Ohio, close to major consuming markets including the automotive industry.

History of the Company

The company was founded in 2004 with the acquisition by OAO Severstal of substantially all of assets of the former Rouge Industries and its operating subsidiary Rouge Steel Company. Alexey Mordashov, OAO Severstal’s Chief Executive Officer, hailed the purchase of Severstal Dearborn as an important milestone in the global consolidation of the steel industry.  He viewed the acquisition as an opportunity to combine the best qualities of the respective companies and to strengthen their economic effectiveness and market position.

In 2005, Severstal entered into a joint venture agreement to develop SeverCorr, the newest mini mill in the United States. In early 2008, Severstal acquired the full ownership of SeverCorr, which is located in Columbus, Miss., and renamed the facility Severstal Columbus. The purchase of this electric-arc furnace shop, built in the mid 2000s, allowed Severstal North America to expand into the growing market for light flat rolled steel products in the southeastern United States.

In 2008, Severstal North America greatly increased its participation in the lucrative and robust North American steel industry with key acquisitions of respected fully integrated steel companies in Sparrows Point, Md., Warren, Ohio, and Wheeling, W.Va. The purchase of the Severstal Wheeling also included a coke oven operation to supply essential coke to Severstal North America’s plant as well as an electric arc furnace. The growth in 2008 allowed OAO Severstal to achieve operating and supply synergies.