The U.S. Department of Energy announced Wednesday morning in a press release that it has offered a $730 million loan to for "the modernization of existing facilities in Dearborn, Mich., in addition to the design, manufacture, and construction of new facilities to produce the next generation of automotive advanced high-strength steel."
The creation of the high-strength steel, in particular, is expected to aid in advances in the safety and manufacturing of vehicles by automotive manufacturers.
Severstal estimates the project will generate over 2,500 construction jobs and over 260 permanent manufacturing jobs in Severstal's Dearborn plant, located on the south end of the city.
Steverstal was for two state Brownfield tax credits for the project, valued at $10 million and $1.25 million.
"The Severstal project will help make American automakers more competitive as demand for lighter, more fuel efficient vehicles increases," said Department of Energy Secretary Steven Chu. "By manufacturing more advanced high-strength steel here at home, we rely less on imports and create thousands of new jobs that get people back to work."
Michigan politificans were elated at the news.
"Today's announcement is great news for the company and its workers, for Michigan and for the nation," said Sen. Carl Levin. "To compete today and in the future and create jobs, our manufacturers must develop breakthrough technologies in a range of areas, and this loan announcement is an important step toward developing and marketing such technologies."
"In Michigan we certainly welcome this announcement that will put so many people back to work," added Sen. Debbie Stabenow, author of the Advanced Technology Vehicle Manufacturing initiative. "This is exactly how this initiative is supposed to work. An old factory is being transformed to produce advanced technology products that will make our cars safer and more fuel-efficient, and employ thousands of Michigan residents in the process."
Including Severstal, the Department of Energy has provided over $9 billion in loans to advanced technology vehicle manufacturers, including Ford Motor Company, Fisker Automotive, Nissan North America, Tesla Motors, and Vehicle Production Group.