Severstal North America makes crude steel as well as flat-rolled carbon steel products (hot-rolled, cold-rolled, electrogalvanized, and hot-dip galvanized). Steel converters are the company's largest customers, accounting for about a third of its business, though the auto industry is also a major segment at a quarter of sales. Severstal North America operates a couple of large steel plants that had been run by other, larger companies until parent company Severstal swooped in. Russian steel producer Severstal has steadily built up its North American operations since it formed this unit in 2004.
The company's hot-rolled steel is used by the automotive industry for products such as frames, seat frames, suspension arms, and wheels. The company's cold-rolled steel is sold to customers to make lighting fixtures, room dividers and doors, and for unexposed applications like floor pan and tubing.
In 2008, Severstal acquired ArcelorMittal's Sparrows Point steel facility, WCI Steel from Harbinger Capital Partners (renamed Severstal Warren) and Esmark's Wheeling-Pitt operation (renamed Severstal Wheeling). However, in 2011, the company sold the three facilities (Warren, Wheeling, and Sparrows Point, all hot-rolled steel plants) to a subsidiary of The Renco Group in a $1.2 billion transaction. The company kept two more efficient mills in Dearborn, Michigan, and Columbus, Ohio. The transaction was designed to move money-losing facilities off Severstal's books and allow it to focus on more profitable operations.
In 2010 Severstal sold a group of assets operated under Northern Steel Group to Los Angeles-based Aurora Resurgence, a private equity fund. The sale included Miami Valley Steel Service, Piqua, Ohio; Premier Resource Group, Lombard, Illinois; Electric Coating Technology, East Chicago, Indiana; and U.S. Metals and Supply, St. Louis, Missouri. – less