SeverStal Completes Management Share Buyout at SeverCorr

Severstal announced that it has completed the purchase of the outstanding ownership shares belonging to the founding management team of SeverCorr, the next generation steel mill located in Columbus, Miss. Following the transaction, Severstal will hold approximately 85% of SeverCorr.  

As part of the purchase, John Correnti, Michael Wagner, Richard Painter, Edward Lehner and Wynn Calland will be leaving Severcorr.  On January 2, 2008, Severstal appointed James Hrusovsky, CEO, who has been working closely with the founding management team on a seamless transition.

Severstal will also be making additional internal appointments to finalise the SeverCorr executive management team and further ensure business continuity. As part of this process, the company today announced the appointment of Mark Miller, Vice President and Director of Projects and Tom Marchak, Vice President Sales and Marketing.

SeverCorr’s operational management team remains in place and departure of the founding management team will not impact operations.  Severcorr continues its successful production ramp-up, having produced approximately 350,000 tn of hot band in 1Q08. The Phase II expansion is on-track to be completed by late 2010 and is expected to more than double the mill’s output to 3.0 mln metric tn.

Commenting on the announcement, Hrusovsky said, “Severstal has been a major supporter of SeverCorr within the past two years, giving strength to our development and further growth.  Since taking over as CEO, I have met with many of the employees.  I am impressed with the breadth and depth of talent here and the superior technology of the facility.  I’m also encouraged by the continued support that we’ve received from our customers and local and state officials.” 

Hrusovsky continued, “John Correnti and the founding management team have been tremendously helpful with the transition and we remain committed to their vision of creating one of the most technologically advanced mills in the steel industry to serve both the customers and community of the fast growing Southern region of the U.S.”