The Russian steelmaker Severstal has announced the completion of the acquisition of US-based flat steel producer WCI Steel, which will be incorporated into Severstal's North American operations as Severstal Warren.
As a result of its offer, Severstal was able to acquire all outstanding shares in WCI Steel for a total consideration of $140 million in cash.
With a total annual production capacity of 1.22 million mt of high quality, custom flat rolled steel, WCI Steel will help Severstal to strengthen its position as one of the North America's leading producers of flat products for the automotive, appliance, furniture, construction and energy markets.
Gregory Mason, CEO of Severstal International and COO of OAO Severstal, commented, "Steel production in Warren has long contributed high quality products to a region that is at the historical center of steelmaking in the US. Severstal is ready to carry that tradition forward in a way that is consistent with our strategy for growth and investment in North America, a strategy that views the experience and talent of the people at WCI Steel as a key part of Severstal's continued success."
On the other hand, Leonard M. Anthony, outgoing president and chief executive officer of WCI Steel, stated, "Since 1912, steel has been made in Warren, providing good-paying jobs for hundreds of thousands of people during its nearly 100 years of operation. Over the years, the changes in ownership have propelled our people to reach higher and become stronger in their dedication to diverse and high quality steel backed by outstanding custom service for our many valued and loyal customers. We expect that tradition will continue under the ownership of Severstal."