Severstal North America, the US steelmaking subsidiary of Russia's OAO Severstal, has applied for another US Department of Energy loan, after the first request for a $730 million loan was rescinded in January. The funds would be used to produce lighter and stronger steel for automakers. Severstal's new application asks for a $320 million loan. Severstal executives have made it clear they believe the loan was rejected because of politics--a number of US Congressmen voiced their disapproval that a loan from a US government entity was going to a Russia-based company.
News outlets reported that after a celebration Thursday for the Severstal's Dearborn, Michigan's $1.4 billion investment, Severstal CEO Alexey Mordashov said: "We believe that this investment is needed for the car industry in the United States. With a strong financial backer, we could do it faster."