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$550 Million Phase II Facility Expansion Completed at Severstal

Bryant, Mordashov in attendance

Severstal Columbus celebrated it’s completion of a $550 million facility expansion on Wednesday at the facility site with a ribbon cutting and reception. 
The expansion project included the addition of a second electric arc furnace, ladle metallurgy furnace, caster, tunnel furnace, and hot-dip galvanizing line. A wide heavy gauge push pull pickle line was also included in the Phase II project. The expansion will increase annual steel production to 3.4 million tons (3.1 million metric tons), doubling the plant’s steelmaking capacity.

Governor Elect Bryant

Speaking at the grand opening were Mississippi Governor-elect Phil Bryant, CEO of OAO Severstal and yearly member of the Forbes’ World’s Top 100 Billionaires List, Alexey Mordashov, and CEO of Severstal North, Sergei Kuznetsov. Mississippi Secretary of State, Delbert Hosemann also attended the event.
Severstal Columbus and Severstal North America are subsidiaries of OAO Severstal, which is one of the world’s largest vertically integrated steel and mining companies.
Severstal’s investment in Columbus has assisted in jumpstarting economic growth in the state of Mississippi, creating over 650 full-time jobs at the Columbus site and attracted steel and scrap processors to its industrial park in Lowndes County.
“I appreciate Severstal’s commitment to Mississippi and the creation of 150 additional jobs with the Phase II expansion,” said Governor-elect Phil Bryant. “Mississippi’s skilled talent and business-friendly environment prove that we have the environment and workforce that can sustain long-term growth.”
Severstal Columbus features the newest and most advanced electric arc furnace facility in the world. With Phase 1 completed in 2007 at cost of $880 million, Severstal Columbus is in the vanguard of the ‘”mini-mill” movement utilizing technology that recycles scrap steel into product suitable for the auto industry, pipe and tube, appliances and other applications.

CEO of OAO Severstal Alexey Mordashov

CEO of OAO Severstal Alexey Mordashov said. “Severstal Columbus is a critical part of our worldwide strategy to carefully steward our resources, move closer to our customers, and develop advanced technologies that will help us become the industry’s leading low-cost producer of high quality steel”
“The addition of Phase II allows us to increase sales to the market sectors where we were not actively present,” said CEO of Severstal North, Sergei Kuznetsov. “We gained broad capabilities in heavy gauge pickled and galvanized products which we are now able to offer to the customers in both master coil and sheets or slit-to-customer order. The launch demonstrates Severstal’s faith in U.S. economy and our commitment to domestic manufacturing, our customers, employees and communities.”

Vice President of Commercial at Severstal NA, Thomas M. Marchak; CEO of Severstal International and Severstal North America, Sergei Kuznetsov; CEO OAO Severstal Alexey Mordashov; Governor-Elect Phil Bryant; and VP and General Manager of Severstal Columbus, Wilbur A. Winland cut the ribbon officially opening Phase II of Severstal Columbus.

Severstal has brought hundreds of high-paying jobs and over a billion dollars of industrial investment to the Golden Triangle area. Severstal has helped to position the region of Mississippi to compete in both local and global steel markets.
Severstal North America is a major steelmaker in the United States and specializes in the full range of the high quality light flat rolled products. Fully integrated operations and corporate headquarters are located in Dearborn, Michigan. A new state-of-the-art electric arc furnace operation in Columbus serves the growing demand for steel in the southeastern United States.
Look for our in-depth feature next week on how steel is processed and made at Severstal.

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