The Russian steelmaker Severstal and the world's largest steel producer Arcelor Mittal have announced that they have reached an agreement for the sale of Arcelor's 25 percent stake in Severgal to Severstal - a move which will mean 100 percent-ownership of Severgal by Severstal.
Arcelor Mittal has terminated the Extragral License Agreement with Severgal and will remain a non-exclusive agent for some of Severgal's products.
Severgal was established as a joint venture company (75 percent Severstal, 25 percent Arcelor) to serve the CIS automotive markets. The company has a capacity for the production of coated products to satisfy the needs of both industrial and automotive markets. However, Severgal's galvanizing line is currently mostly employed to satisfy the requirement of the Russian domestic market.
In addition, Arcelor Mittal and Severstal have agreed to pursue their respective development plans in the automotive industry.