Severstal, Russia, reportedly plans to sell its North American steel operations in Mississippi and Michigan for about $1.5 billion. According to the Wall Street Journal, at least two potential buyers have expressed interest. U.S. Steel is said to be most interested in Severstal’s Dearborn mill, which supplies long steel coils to auto makers in Detroit.
Severstal bought the Dearborn plant in 2003 from Rouge Industries for $285.5 million. It has spent over $1 billion upgrading the facility. Severstal’s plant in Columbus, Miss., is a minimill that makes steel from scrap.
Brazil’s CSN, which recently lost a bid to buy a plant in Alabama from ThyssenKrupp AG, has reportedly expressed interest in buying both assets.
A successful sale of the two plants would leave no Severstal plants in the United States. In 2011, Severstal sold three unprofitable U.S. plants—in Maryland, Ohio, and West Virginia—to family-owned Renco Group Inc.
