SeverCorr details begin to emerge

SeverCorr details begin to emerge

Details on the formation and makeup of newly formed SeverCorr LLC are starting to emerge. SeverCorr LLC will be running the soon-to-be-built steel mill in Columbus, Mississippi. SeverCorr has emerged as a joint venture between Russian steel giant Severstal Group and SteelCorr. Newly formed Severstal US Holdings LLC will represent Severstal. As of September 28, Severstal US Holdings LLC became the owner of 59.95 percent of authorized capital or 19.9 percent of ordinary share of the new company. Severstal will not run the company but will only manage its interests in the company. Heading up management at SeverCorr will be John D. Correnti. Correnti served as president, CEO and vice chairman of Nucor Corporation from 1996 to 1999 and as its president and CEO from 1991 to 1996 Total construction of the project is rumored to be around $880 million. The mill is slated to open by the third quarter 2007 and will produce 1.5 million tons of steel per year. Other significant investors in the project are KfW Bank and General Electric Capital with contributions of $227 million and $440 million respectively. The project has been bogged down with complications for several months. At the outset, officials in nearby Gulfport, through which more than 800'000 tons of pig iron will pass, were concerned about how to handle such a large amount of raw material. Further concerns were raised about how it would affect tourism. Later problems arose as to the placement of a 250-foot galvanizing tower so close in proximity to a nearby airport. Compromises to relocate the tower nearly a mile away were met with stern resistance by Mr. Correnti who threatened to completely dismantle the project. A company aviation official later stated that the airport would not be adversely affected by the tower if air traffic patterns were altered and the tower was properly lighted. It now appears, however, that despite these problems all is set to go and construction will soon commence.