Russian steel and mining company Severstal plans to take out a US$730m loan from the US government to finance the expansion of its Severstal Dearborn plant in Michigan, the company’s press office said on Monday.
The company said that it was in talks with the US Department of Energy over a long-term loan under a US government programme to develop car manufacturing technologies.
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The loan is partly aimed at financing the construction of a production line, which is to produce lightweight, high-strength steel sheets for carmakers, the company said.
Severstal also added that it has supply agreements with Ford, General Motors, and Chrysler Group, Prime-Tass reported.
Currently, Severstal owns two steel mills in the US, Severstal Dearborn and Severstal Columbus, with production capacities of 3.4m and 1.5m tonnes per year, respectively.
On 1 April, Severstal completed a deal to sell three of its steel smelters, Severstal Warren, Severstal Wheeling, and Severstal Sparrows Point, in the US with a total production capacity of 7.3m tonnes of steel per year.
