Wheeling-Pittsburgh and Severstal to form coke plant

Wheeling-Pittsburgh and Severstal to form coke plant

According to the statement released by US steel producer Wheeling-Pittsburgh, the company has signed a non-binding letter of intent with Severstal North America to form a joint venture coke plant. On the condition that two parties sign a definitive letter of intent, which is expected to be signed on or before March 31, 2005, Wheeling-Pittsburgh will contribute the assets of its Follansbee Coke Plant to the joint venture and Severstal North America will contribute a capital of $140 million to rebuild the facility over four years. Moreover, Severstal will pay $20 million to Wheeling-Pittsburg at the closing of the joint venture. In line with the deal, Severstal will have 50% of the coke plant. Moreover, each party will take 50% of the coke produced at the coke facility. The coke plant is expected to produce more than 1 million tons of coke per annum after the completion of the capital improvements.