Russia’s Severstal to Sell Two Metal Plants for $2.3 billlion.
August 8, 2014Severstal, a Russian steel maker is selling two of its American facilities to two of its competitors, Steel Dynamics an AK Steel, for a hefty $2.3 billion dollars.
The Russian steel maker invested in the international expansion before the financial crisis hit, and now they’re looking to cut their losses. In response to the crisis in Ukraine, the United States has tightened its policies on Russia’s access to financial tools. However, the sales of the two facilities are primarily the results of a struggling business.
This acquisition of the two facilities should be a great step for the United States steel industry. Jeff Largey, steel analyst at Macquarie Securities, said, “I think this is a positive development for the U.S. steel industry. It leads to further consolidation of the market by U.S. producers.”
Other foreign producers have also noticed struggles in the U.S. market. German steel maker, Thyssen Krupp, was forced to sell its facility in Atlanta for $1.55 billion.
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Original article written by: Stanley Reed, The New York Times