Severstal North America announced Monday the decision to dissolve its Dearborn, Michigan-based Double Eagle Steel Coating Company partnership with United States Steel Corporation.
Over the past several years, there has been a significant decline in the market demand for electrogalvanized (EG) products and a shift toward the new hot dip coated technology, Severstal said in a statement. After a thorough review of the business trends and conditions by the Board of Directors, the parties mutually concluded that the economic viability of EG production at Double Eagle could no longer be maintained.
"We would like to thank our long-term partner in this joint venture, United States Steel Corporation, for the years of productive and mutually-beneficial cooperation. We would also like to thank all of the customers, employees and the local community for their support through the years," stated Sergei Kuznetsov, CEO, Severstal North America. "As the time has come to end this partnership, we will work harder to meet the demands of our customers and provide the highest-quality of coated advanced high strength steels available on the market. The new products off our existing facilities will deliver all the benefits of our highly skilled workforce, technology and equipment."