Severstal to halt production at Sparrows Point for one month owing to poor market situation
MOSCOW. June 7 (Interfax) - OJSC Severstal will halt steelmaking production at the U.S. plant Sparrows Points for 30 days at the end of June owing to the worsening market situation, as well as the need to reduce its current reserves, the Russian steelmaker told Interfax.
The company did not comment on how many jobs would be reduced during this period.
According to the U.S. daily The Baltimore Sun, the plant's steelmaking facility employs 600 persons. The company plans to meet with the members of United Steelworkers Local 9477 for the purposes of discussing the outcome of the production stoppage.
Severstal North America includes five plants: Severstal Dearborn, Severstal Columbus, Severstal Sparrows Point, Severstal Warren and Severstal Wheeling.
Severstal has assets in Russia, North America, Europe and Ukraine. The main beneficiary is the general director, Alexei Mordashov, with more than 82% of shares. About 18% are in free float.