Severstal Announces Double Eagle Steel Plant to Close by 2015

DEARBORN — Severstal North America, one of the largest steel producers in the United States, announced on Monday that Double Eagle Steel Coating Co. will be closing in spring 2015.

Double Eagle Steel Coating is a joint venture between Severstal North America and U.S. Steel that supplies electrogalvanized steel products for the auto industry.

The plant employs roughly 126 workers, nearly all of whom are Severstal employees.

Severstal said the decision to shutter the partnership is due primarily to "a significant decline in the market demand for electrogalvanized products" and a shift toward the new hot dip coated technology.

After reviewing the business trends and conditions, the Board of Directors for Severstal North America and U.S. Steel mutually concluded that the economic viability of electrogalvanized products production at Double Eagle could no longer be maintained, the company said in a press release.

“We would like to thank our long-term partner in this joint venture, United States Steel Corporation, for the years of productive and mutually-beneficial cooperation. We would also like to thank all of the customers, employees and the local community for their support through the years,” said Sergei Kuznetsov, CEO, Severstal North America.

“As the time has come to end this partnership, we will work harder to meet the demands of our customers and provide the highest-quality of coated advanced high strength steels available on the market. The new products off our existing facilities will deliver all the benefits of our highly skilled workforce, technology and equipment.”

Severstal launched its new $285-million hot dip galvanizing line in 2012. The company expects to transition from electrogalvanized products to hot dip galvanized by the first quarter of 2014 and is currently working with the customers to achieve that objective.

Severstal officials said several of its Double Eagle workers could transfer over to the Severstal Dearborn plant once contract negotiations are completed. The Severstal Dearborn plant currently employs 1,400 workers.