Severstal Sells Rouge Steel Unit, Exits U.S. Market

Russian steelmaker OAO Severstal, which spent $2 billion over the past decade establishing a presence in the U.S., is selling off all its American operations for about $2.3 billion.

The company began arranging the selloff at the end of last year. Severstal had amassed capacity to make 5.2 million metric tons of steel per year in the U.S. But last year it replaced most of the unit's senior management team in an effort to find a sustainable growth plan for its acquisitions.

Severstal bought Ford Motor Co.'s historic Rouge steel complex in Dearborn, Mich., in 2004. It is selling the facility, including a coke-making plant and stakes in three flat-roll steel production operations, to Ohio-based AK Steel Holding Corp. for $700 million.

Severstal also is selling its Mississippi steelmaking operations to Indiana-based Steel Dynamics Inc. for $1.6 billion.

Both sales are expected to be finalized this year.