Severstal to Spend $2 Billion on Capital Improvements in 2011

Russian steel producer OAO Severstal will invest $2 billion into capital improvements in 2011, a 48% increase over last year, the company said Feb. 21.

The investment includes upgrades to mills in Dearborn, Mich., and Columbus, Miss. The company will construct a second electric-arc furnace and additional hot-dip galvanizing line the Columbus facility, along with a continuous caster, tunnel furnace and pickle line.

The Dearborn mill will receive a new cold-rolling complex and hot-dip galvanizing line.

The U.S. investments totaling approximately $465 million account for a 69% increase over 2010.

Severstal will spend about $940 million on its Russian operations, including a new minimill in Balakovo in the Saratov Region.

The company will invest approximately $650 million at its Russian mining operation to modernize production equipment, complete a thermoelectric power station and exploration and development activities.