Russian steel major Severstal announced Tuesday, September 17 that it has invested in Michigan, US-based Arcanum Alloys, which develops new technology steel-based alloys. According to the company statement, Severstal is the lead investor of the last funding round with about $6 million, among other investors such as US-based venture capital firm Khosla Ventures.
Arcanum Alloys has developed a new and unique technology to produce surface optimized diffusion alloys, by which the company produces certain products equivalent to stainless steel, but with superior formability and at lower costs, targeted at customers in the automotive, construction and white appliances sectors.
“Russia remains a big importer of stainless steel, with this innovative product we hope to offer to our domestic clients a better alternative to certain stainless steel grades,” said Andrey Laptev, director of business development and corporate ventures projects at Severstal.
“By increasing our exposure to the latest technologies and alternative methods for producing different types of steel, we continue to expand Severstal’s competitive advantages and drive innovation in the steel industry. The company expects to receive financial returns on its investment in Arcanum Alloys, and also to become one of the first globally to be able to offer these products to its customers. Severstal plans to present to our clients steel produced using Arcanum Alloys’ technology on our pilot production at Cherepovets Steel Mill in 2020,” said George Gogolev, general manager of Severstal Ventures.