Market Segment
August 10, 2022
Evraz Puts North American Operations Up for Sale
Written by Laura Miller
Russia’s Evraz plc has put its North American operations up for sale.
Evraz North America (Evraz NA) operates two electric arc furnace facilities, four rolling mills, eight tube mills, and 17 scrap recycling facilities. It has annual steelmaking capacity of 2.3 million tons and a finished steel capacity of 3.5 million tons per year, including tubular products. It is a leading producer of rail, pipe, and steel plate.
The company is also currently building a greenfield rail facility to replace an existing rail mill, which is expected to be completed by 2023.
“The possible transaction will be subject to regulatory and corporate approvals and applicable sanctions laws, and will require approval from relevant sanctions authorities,” Evraz said in a statement.
Evraz plc said it has not received, nor does it plan to receive, any income from the activities of its North American operations this year.
Additionally, “Evraz does not intend to provide any additional information on this process unless or until the process is finalized,” the company said.
Evraz NA performed well in the first half of 2022 despite its parent company’s struggles due to Russia’s ongoing war in Ukraine. Its H1 earnings before interest, taxes, depreciation and amortization (ebitda) totaled $296 million.
A spokeswoman for Evraz NA said the company does not have any additional comment at this time.
By Laura Miller, laura@steelmarketupdate.com
