Russia's largest steel producer purchased ArcelorMittal's Sparrows Point steel mill in Baltimore for $810 million, Reuters news service reported on March 21.
Severstal plans to close the deal during the second quarter of 2008, according to Reuters. The sale is part of an antitrust settlement following the merger between Mittal Steel and Arcelor SA.
The United Steelworkers Union (USW) is backing the move, saying it reinforces its commitment to industrywide consolidation.
"The Severstal deal demonstrates the USW and its members are the critical players in the continuing consolidation and revitalization of North America's steel industry for those who want access to our hemispheric market," USW President Leo Gerard said in a March 21 statement. "USW-represented steelworkers are world class partners for the economic future."