AMM.com (U.S.) informed that Severstal’ is ready to sell Severstal Warren, Severstal Sparrows Point and Severstal Wheeling, all—former parts of Esmark, bought by Severstal’ in August 2008 for $775 m.

Offers to purchase were directed to both strategical and financial investors, including Compania Siderurgica Nacional (CSN), Gerdau, Porto Alegre (all the three of Brazil), Ternium (Luxembourg), AK Steel Corp., US Steel Corp. (U.S.), Apollo Management and Aurora Capital Group funds as well as to one of S.-Korean steel companies. The responses are expected no late than August 13. CSN and US Steel are listed as the most likely buyers.

Severstal’s representative declines to comment what he calls "market gossip".

Apart from the items offered for sale, Severstal North America integrates Severstal Dearborn and Severstal Columbus, the enterprises dealing in automotive rolled metal and pipe making. Their annual capacity of 7.4 m t of steel will be halved after the sale of three other enterprises.

The company has already sold Northern Steel Group and 51 per cent of Lucchini stock. In 2009, Severstal’ lost $1 bn on its N.-American division. Some of the enterprises, displaying highest costs among Severstal’s plants, were suspended during the crisis.

We plan to remain a big player at the U. S. market waiting for its revival, Severstal’s principal owner, Alexei Mordashov, announced in March. Recently disclosed annual report revealed the intention to restructure the company`s U. S. assets turning them profitable even in the current downcast circumstances. Besides, there are plans to develop a network of steel mini-plants in the region.

Theme:  Property/Iron/Outside Russia