Severstal North America Inc. and U.S. Steel Corp. have decided
to dissolve their Double Eagle Steel Coating Co.
electrogalvanized steel joint venture.
The dissolution comes
amid "a significant decline in the market for electrogalvanized
products and a shift toward the new hot-dip coated technology,"
Severstal said July 15. "After a thorough review of the
business trends and conditions by the board of directors, the
parties mutually concluded that the economic viability of
(electrogalvanized) production at Double Eagle could not be
Double Eagle was
formed by Pittsburgh-based U.S. Steel and Rouge Industries Inc.
in 1984. Severstal NA parent company OAO Severstal,
Cherepovets, Russia, acquired Dearborn, Mich.-based Rouge
Industries in 2004 (
amm.com, Feb. 2, 2004).
Severstal intends to
wind down electrogalvanized production at its Dearborn plant
over the next 20 months and refocus efforts on the $285-million
hot-dip coating line that it launched last year, Katya Pruett,
Severstal NAs director of public relations and
communications, told AMM, adding that the company
expects to transition to hot-dip galvanized product at the
plant by the first quarter of 2014.
"The plan is to
replace electrogalvanized products with hot-dip galvanized
products," Pruett said. "We will work with customers to
transition to hot-dip galvanized products, and will also review
our options to support electrogalvanized products via
U.S. Steel manager of
media relations Courtney Boone told AMM that the
steelmaker "anticipates being able to serve our customers and
produce (electrogalvanized) products at our other facilities,"
citing automotive coating lines at Great Lakes Works in
Michigan and Pro-Tec Coating Co., Leipsic, Ohio.