Alexey Mordashov, Chief Executive of OAO Severstal, said: "2009 was a difficult year for the global steel industry but the decisive actions we took during the year leave the Company well positioned for 2010. Solid economic growth in emerging markets and a gradual recovery of demand in mature markets have improved the outlook for 2010. Furthermore, growing demand from China for raw materials has already led to higher spot prices for iron ore and coking coal in 2010, a trend we believe will be sustained during the year. We look forward to 2010 with confidence."
After being shut down since October of 2008, Severstal is preparing to produce steel again in Warren.
"In some respects, it's like a new steel mill is opening in the Warren area," said Warren Mayor Michael O'Brien.
Union officials say that nearly 600 of their members are now on the job at the Warren plant. Those workers are in the process of re-firing the blast furnace, that means they can begin iron making over the next few days. That's the first step in getting a finished product coming out of the plant. The reopening is good news for the city of Warren.
"Even though they (Severstal) are outside of the city, the employees, a lot of the employees reside in the city," said O'Brien. "So there will be an increase in income tax we will be collecting. As important is that Severstal is Warren's largest water customer."
When the plant was up and running in 2008, Severstal purchased $1.8 million worth of water, last year they bought just half of that.
The plant being operational not only has a positive impact on the city and its bottom line, it's also good news for local businesses.
"Those people are going to the grocery store, and buying what they normally bought before, while they were working," said O'Brien. "As far as disposable income it's enormous with five-hundred people going back to work."
The plant should be able to begin melting steel within a few days, and the plan is for finished product to be coming out of Severstal Warren by the end of the March
