Russian mining and metals company OAO Severstal said it has signed an agreement to purchase Warren, Ohio-based WCI Steel Inc. for $140 million.
The deal, which is subject to regulatory approvals, builds on Severstal's growing U.S. presence. The company already has operations in three U.S. cities and will add 1.22 million metric tons of steel-making capacity with the addition of WCI.
"It solidifies our position as the fourth-largest steel producer in the U.S. by raising Severstal's total U.S. capacity to just under 11 million metric tons per year," says Gregory Mason, CEO of Severstal International and COO of OAO Severstal, when the deal was announced May 16. "The addition of WCI to Severstal's family will enhance our custom product capabilities and create opportunities to increase profitability in both the short and long term."
The deal is expected to close in late second-quarter or early third-quarter 2008.
