Russian steelmaker OAO Severstal said yesterday that its acquisition of the Sparrows Point complex could close as early as mid-May and that it plans to rapidly ramp up production at the Baltimore County steel plant.
Severstal plans to bring plant production up to full capacity of 3.6 million tons a year, company executives told analysts during a conference call from Russia.
The plant shipped 2.3 million tons last year. Current owner ArcelorMittal has operated Sparrows Point as a swing plant, with output fluctuating with market forces.
Severstal, which announced last week that it was buying the 119-year-old Sparrows Point for $810 million in cash, plans to increase shipments by 15 percent to 20 percent and sales by 20 percent.
The increase in capacity would happen "as soon as possible," Chief Operating Officer Gregory Mason said during the call.