Tuesday, March 25, 2008

Severstal Buys U.S. Mill for $810 Million

Severstal, Russias largest steel maker, will expand its U.S. presence with the $810 million acquisition of the Sparrows Point mill in Maryland, which ArcelorMittal is selling for antitrust reasons.

Severstal said Friday that it expected to close the all-cash deal to buy the former Bethlehem Steel unit in the 2008 second quarter. The additional capacity is equivalent to about 20 percent of the company’s crude steel output last year.

“We remain committed to growth in North America and believe in the long-term promise of the U.S. market,” said Severstal chief executive and main owner Alexei Mordashov, ranked the world’s 18th-richest man by Forbes magazine.

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