Obama administration declines a $730 million loan for steelmaker Severstal North America

Article by Christian A., on January 9, 2012

The Obama administration made the decision last Friday to oppose the closure of a loan of up to $730 million for steelmaker Severstal North America, whose financing bid to expand a plant for auto steel production has attracted the attention of congressional investigators who are evaluating Energy Department loan programs.

Congress has yet to make a conclusion about Severstal's application but the Energy Department said that it has decided not to proceed with the financing for the wholly owned subsidiary of Russia's OAO Severstal.

Damien LaVera, an Energy Department spokesman, said that not all projects that get a conditional commitment are able to close its loan.

The agency had a Friday deadline to decide if it will finalize terms approved conditionally last year for financing for the expansion of its Dearborn, Mich., plant to form steel that are lighter and stronger for auto production.

In 2004, the Russian steelmaker acquired the plant, originally built by Ford Motor, from former owner, Rouge Industries Inc.

The advanced vehicle initiative of the Energy Department is involved in the congressional scrutiny of the agency's overall loan programs after a politically charged controversy related to financing of Solyndra, the bankrupt solar company.

The Republican-led House Oversight Committee had received information about the Severstal loan from DOE. Darrell Issa, the chairman of the panel, inquired last October why Severstal deserved a low-interest taxpayer loan of as much as $730 million considering the status of its parent as a global firm.

If you liked the article, share on:

Comments

Recommended

After the highly dynamic Polestar 1 two-door coupe – Polestar’s first ever production car -- was recently unveiled, not a few people’s curiosity was piqued as to how much they...
by - October 21, 2017
The BMW 7 Series is already highly sought after but nonetheless, the German marque is giving it a more exclusive variant for the Russian market, and they are calling it...
by - October 20, 2017
Several automakers including Porsche, Volkswagen, Smart and even Land Rover have all been victimized by cheap Chinese copycats. And if you haven’t seen it yet, the most recent one would...
by - October 20, 2017
The Mercedes-Benz G-Class has been around for quite some time now but to bid it farewell, the company has launched the Mercedes-AMG G65 Final Edition. Mercedes will only build a...
by - October 20, 2017
Have you ever wondered what you can you buy with $9,365 in your pocket? Well, you have quite a lot of options. In fact, you can even purchase a used...
by - October 20, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries