Severstal studying U.S. plants

STAFF REPORT

Severstal, the Russian steelmaker that curtailed steelmaking in its Warren plant almost a year ago, said in its quarterly earnings report that it is finishing a study of its North American operations.

Severstal said Monday that it “will retain our most-efficient units with a view to making them even more flexible and efficient.” The review of its unit is ongoing, and the company remains committed to the North American market, the report said.

It didn’t provide a timetable, other than saying the restructuring will continue in the second half of this year. It noted that its mills in Warren and Wheeling, W.Va., are idle but didn’t elaborate on the mills’ future.

Severstal shut down the Warren mill’s steelmaking operations for maintenance last October and never restarted it. Finishing operations at the mill were closed earlier this year.

The mill has laid off more than 1,000 hourly and salaried workers in Warren, but officials have said the idling is temporary.

Other parts of the North American unit include mills in Michigan, Maryland and Mississippi.

Severstal said its North American unit had a loss of $236 million before interest, tax, depreciation and amortization in the second quarter. Severstal as a whole posted a $290 million net loss, compared with earnings of $1.5 billion a year earlier.

Severstal began acquiring mills in the U.S. in 2004. It bought the former WCI Steel in Warren in 2008.