OREANDA-NEWS. Arcelor Mittal and Severstal have announced today the agreed sale to Severstal of the 25% minority stake held by Arcelor in Severgal, their joint venture located at the Severstal Cherepovets site.

According to the press service of OJSC “Severstal”, the Severgal joint venture was originally set up to serve the former CIS automotive market. While it has the capacity to produce coated products for both the industry and the automotive markets, the hot dip galvanising line is currently mostly dedicated to supplying the booming domestic industry market.

Arcelor Mittal terminates the Extragal License Agreement with Severgal and will remain a non-exclusive agent for some Severgal products.

In addition, Arcelor Mittal and Severstal have agreed to separately pursue their respective development plans in the automotive market.