Severstal Starts New Cold-Rolling Line in Michigan

Aug. 18, 2011
Facility will produce lightweight, high-strength steel for the auto industry.

Severstal North America has begun production at its new cold-rolling complex in Dearborn, Mich., where the company will produce advanced high-strength steels for automotive applications, the company said Aug. 18.

The $450 million facility is expected to reach full capacity of 2.1 million net tons within six months, the company said.

"The launch of our new cold rolling complex is a key component in our goal of becoming one of the worlds most efficient and advanced steel producers," said Sergei Kuznetsov, CEO, Severstal North America.

In July, the Department of Energy awarded Severstal a $730 million conditional loan to support the company's modernization activities and new construction in Dearborn.

The Energy Department cited the project's potential to significantly increase the supply of advanced high-strength steels in North America as demand continues to grow for fuel-efficient vehicles.

U.S. steelmakers have begun producing more lighter-weight steel that has traditional strength characteristics to meet fuel-economy demands in the auto industry.

The new pickle line tandem cold mill is part of a $1.1 billion capital improvement initiative that Severstal has undertaken to expand its finishing capabilities.
Severstal estimates the Dearborn project will generate over 2,500 construction jobs and over 260 permanent manufacturing jobs, according to the DOE.

Also as part of the initiative, the company is investing $285 million in a hot-dipped galvanizing line at the same complex that is expected to launch in December. The new line will produce coatings for automotive applications and other cold-roll consumers.

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