Russian steelmaker Severstal has received bids from potential buyers for its North American operations, a Russian source familiar with the matter said Monday.
Severstal's operations in the United States consist of steel plants in Dearborn, Michigan and Columbus, Mississippi.
The source said the sales process was unrelated to the worsening political relations between the United States and Russia over Ukraine. The company had started looking into a sale in September, the source said.
The source said no decisions had been made on a potential sale. Severstal declined to comment.
Severstal bought the plant in Dearborn in 2003 for $285.5 million and has invested about $1 billion. It built the Columbus plant and launched it in 2007, investing $1.5 billion in total. The plants generated revenues of $3.9 billion in 2013, 30 percent of the company's revenues.
Severstal has parted with other U.S. assets, selling three steel plants in Maryland, Ohio and West Virginia in 2011 to Renco Group for $225 million.
The Wall Street Journal earlier reported that the operations could fetch $1.5 billion and that potential buyers were United States Steel Corp and Brazil's Companhia Siderurgica Nacional SA.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
