Severstal Columbus Unveils $550 Million Phase-II Facility Expansion

Severstal North America, a subsidiary of OAO Severstal, celebrated the grand opening of its Phase II expansion in Columbus, Miss.

According to a Severstal North America, the $550 million expansion project at Severstal Columbus will increase annual steel production to 3.4 million tons, doubling the plant’s current steelmaking capacity. The expansion project included a second electric arc furnace (EAF), a ladle metallurgy furnace, caster, tunnel furnace, and hot-dip galvanizing line. A wide heavy gauge push pull pickle line also was included in the project.

Alexey Mordashov, CEO of OAO Severstal together with Sergei Kuznetsov, CEO of Severstal North America hosted the ribbon cutting ceremony. Newly elected Mississippi Governor Phil Bryant, along with Mississippi’s Secretary of State Delbert Hosemann also attended the grand opening.

“I appreciate Severstal’s commitment to Mississippi and the creation of 150 additional jobs with the Phase II expansion,” Bryant says. “Mississippi’s skilled talent and business-friendly environment prove that we have the environment and workforce that can sustain long-term growth."

In statements made during the ceremony, Mordashov says, “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 company says the first phase in the project was completed in 2007 at cost of $880 million.

“The addition of Phase 2 allows us to increase sales to the market sectors where we were not actively present. 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,” Kuznetsov says.