Severstal Columbus has been sold to Steel Dynamics Inc., an Indiana-based steel producer and metal recycler.
The plant, which sits on 1,400 acres near Airport Road, was sold by its Russian owners for $1.62 billion, according to a Steel Dynamics statement Tuesday.
The plant began operations in 2007. It makes steel out of scrap metal. Roughly 650 people work there.
“I would like to enthusiastically welcome the Columbus employees, community and customers into the Steel Dynamics family,” Mark Millett, chief executive officer of Steel Dynamics, said. “The successful completion of the Columbus acquisition is an important milestone for Steel Dynamics and represents a significant step in the continuation of our growth strategy.”
Officials with Steel Dynamics said the purchase expands the company’s operating base, increasing its annual steel shipping capacity to 11 million tons — a 40 percent increase.
Officials also noted that Columbus is “advantageously located in Mississippi to serve the high-growth markets in the Southern U.S. and Mexico, providing both geographic diversification and growth opportunities.”
On Tuesday, Severstal confirmed the sale of both its Columbus plant and a 1,800-employee plant in Michigan. AK Steel bought the Michigan operation for $700 million.
“I would like to express gratitude to the whole team and to every employee of Severstal North America for achieving a lot together,” Alexey Mordashov, Severstal chief executive officer, said in a statement.
The sale of the plants was first announced in July. At the time, Mordashov told several news outlets the sales were cost-cutting moves.
There was speculation that tensions between the United States and Russia, which invaded Ukraine earlier this year, would halt the sale. The United States threatened sanctions against Russia for its activity in Ukraine, but Severstal was not among those companies targeted by those sanctions.
William Browning was managing editor for The Dispatch until June 2016.
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