July 24, 2013
Severstal, U.S. Steel Dissolve Double Eagle Joint Venture
Severstal North America and U.S. Steel Co. have dissolved their joint venture Double Eagle Steel Coating Co., based in Dearborn, Mich., due to a change in the market for electrogalvanized product in favor of more hot-dip coated technology. After a thorough review of the business trends and conditions, the parties mutually concluded that the economic viability of electrogalvanized production at Double Eagle could no longer be maintained.
“We would like to thank our long-term partner in this joint venture, United States Steel Corp., for the years of productive and mutually beneficial cooperation,” says Sergei Kuznetsov, CEO of Severstal North America. “As the time has come to end this partnership, we will work harder to meet the demands of our customers and provide the highest-quality coated advanced high-strength steels available on the market.”
Severstal Dearborn launched a new $285 million hot-dip galvanizing line last year to produce product for exposed and unexposed automotive applications. The company expects to transition from electrogalvanized to hot-dip galvanized by the first quarter of 2014.