Steel Products

Severstal Canceling Foreign Investments

Written by Sandy Williams


Written by: Sandy Williams

Severstal has suspended plans to build a DRI facility in Trinidad & Tobago, citing a drop in profits and weak global demand. The proposed $600 million facility would have supplied DRI for the Severstal Columbus electric arc furnace.

The company also canceled a planned investment of $5 billion with India owned NMDC to build a flat steel plant with a capacity of 1.5 million tons per year in Karnataka. CEO Alexey Mordashov said at a conference on Tuesday that the project was suspended because NMDC refused to relinquish control of the project to Severstal.

Severstal announced a fourth quarter loss last week of $150 million. Net profit for the year dropped to $762 million from $2,035 million in 2011, a 62.6 percent plunge.

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