Evraz Colorado, Canada mills on the market

The London-based Evraz plc subsidiary of Moscow-based Evraz has announced it is in the process of soliciting proposals for the acquisition of its Evraz North American subsidiaries.

The company says the sale will allow it to “unlock the stand-alone value of the North America business,” acknowledging global sanctions on Russian companies by saying the sale “will require approval from relevant sanctions authorities,” including the United Kingdom’s Office of Financial Sanctions Implementation (OFSI).

Evraz says the solicitation process is currently being conducted under an OFSI general license, “and we are in contact with OFSI as part of this process.” Beyond that, the steel producer adds, “Evraz does not intend to provide any additional information on this process unless or until the process is finalized.”

The steelmaker describes Evraz North America as a vertically integrated producer of engineered steel products for the North American rail, energy, industrial and construction markets. It has annual crude steelmaking capacity of 2.3 million tons and finished steel (such as rail or tubular products) capacity of 3.5 million tons.

The company operates two electric arc furnace (EAF) mills, one in Pueblo, Colorado, and the other in Regina, Saskatchewan. Just last year, Evraz announced a significant investment project for the Regina rail mill. It also idled a melt shop in Portland, Oregon, several years ago.

Evraz also operates four downstream rolling mills, eight downstream tube mills and 17 scrap recycling facilities in North America, with its website indicating the scrap yards are in Colorado and North Dakota in the United States and in Alberta, Manitoba and Saskatchewan in Canada.