The Russian steelmaker Severstal has announced that in 2010 it will invest $413 million in projects for increasing operational efficiencies at its Severstal North America division, aimed at improving the cost effectiveness of its US business over the longer term.
"In 2010, $413 million will be invested in projects including the replacement of the tandem mill at Dearborn. This will substantially improve processing costs at Dearborn's cold rolling facilities and pickling lines by 2013. We will also begin Phase II at Columbus and by its completion, expected to be in 2012, this project will add a further 1.5 million mt of mini-mill capacity per year to our North American operations," reads the company's statement.
In 2009, Severstal North America division saw its revenue decrease to $4.023 billion from $5.319 billion in 2008, as a result of lower sales volumes and prices, and reported a negative EBITDA of $654 million compared to a positive $377 million in 2008.
"We believe that the North American market will continue to improve in 2010 and that we will achieve better capacity utilization and benefit from the increased flexibility in our cost base that has resulted from restructuring. Overall, we anticipate moderate recovery in North American markets and believe there will be improvements in demand from the automotive and other steel consuming segments," Severstal said in its statement.