The Russian-based Severstal Group acquired the assets of the former Rouge Steel from bankruptcy for $345 million and formed Severstal NA in 2004. Since then, the company has invested $1.3 billion in upgrading the facility and dramatically improving its quality. The upgrades include a new blast furnace, hot dip galvanizing line, pickle line tandem cold rolling mill, and significant upgrades at the basic oxygen furnace, caster and hot strip mill.
The Michigan Economic Development Corporation supported Severstal’s investments in 2005 with a Retention MEGA valued at up to $49 million over 20 years, Brownfield credits valued at $51.25 million, training grants, and city of Dearborn local tax abatements.
MEDC President and CEO Michael A. Finney said Severstal’s decision to locate in Dearborn demonstrates Michigan’s strong advantages as a great place to do business.
“Severstal’s commitment sends a message around the world that Michigan’s highly competitive business climate and tremendous workforce capabilities mean real opportunities for leading edge companies,” Finney said. “I applaud the efforts of everyone who helped secure this expansion and the jobs it is retaining in Michigan.”
OAO Severstal CEO Alexey Mordashov said the company had a long-term vision for the plant from the first day it acquired the Rouge assets eight years ago.
“We saw opportunities to succeed by creating strong industry and community ties and servicing our customers with high quality products and advanced technologies,” Mordashov said. “Being located here in the heart of the automotive industry with strong heritage and spirit of innovation, we are proud to be able to continue on the traditions of the great past and on to the bright future.”
Severstal North America is a wholly-owned subsidiary of Russian-based OAO Severstal, one of the world’s leading vertically-integrated steel and steel-related mining producers with geographically diversified assets on four continents.
The Michigan Economic Development Corporation, a public-private partnership serving as the state's marketing arm and lead agency for business, talent and jobs, focuses on helping grow Michigan's economy. For more on the MEDC and its initiatives, visit: http://www.michiganadvantage.org/.
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