Slower demand for steel products and current economic conditions have prompted OAO Severstal to reduce production for the month of October. The cuts will affect the company’s steel plants in North America, Russia and Europe. In the United States, Severstal said it will adjust production to balance with customer needs to an aggregate of approximately 30% across its facilities. In Russia, Severstal will reduce production for crude steel at its Cherepovets steel plant by approximately 25%. In Italy, Severstal is scheduling October production cuts of 30%.
In 2008, Severstal has acquired Wheeling-Pittsburgh parent company Esmark Inc. (four plants in Ohio, West Virginia and Pennsylvania) and has purchased plants in Baltimore, Md., and Warren, Ohio. It also recently acquired PBS Coals, a miner and processor of metallurgical and thermal coal with six underground and six surface coal mines in Somerset County, Pa.
Severstal Announces Production Cuts
October 13, 2008