Severstal eyes Canadian foothold in Stelco
Russian steelmaker
Severstal yesterday confirmed that it made a formal offer for the bankrupt Canadian steel producer Stelco Inc.
The United Steelworkers union backs the bid of
Severstal, which has been in the midst of a global expansion spree that saw it acquire mills in the US and
Italy.
Severstal reportedly promised that it would not dismiss workers and that it would invest in the operation and reduce the pension plan deficit.
Since
Algoma Steel decided against making an offer for Stelco last week,
Severstal is believed to be in the best position to acquire the Canadian steelmaker.