Severstal NA will sell 4 metal service centers that it currently operates in the United States to Aurora Resurgence. The designated buyer is a privately-owned equity fund based in Los Angeles, California.

The breakdown of revenues and expenses from the Russian company’s disposition of assets has not been released yet. Severstal’s statement indicated that any gains realized will be utilized for general corporate purposes.

The production units that Severstal would sell in the transaction include the Miami Valley Steel Service, based in Piqua, Ohio, the Premier Resource Group, located in Lombard, Illinois, the Electric Coating Technology, East Chicago, Indiana, and the U.S. Metals and Supply, St. Louis, Missouri. The Russian steel giant acquired these assets in addition to the Esmark plant in August 2008. Esmark, which sold its steel assets to Russia’s Severstal in 2008, has already repurchased three processing plants that were part of the earlier transaction.

After Severstal concludes the sale of these assets, its remaining U.S. production facilities will include Independent Steel in Valley City, Ohio, as well as Sun Steel and Century Steel, which are located in Chicago Heights, Illinois.

According to the Chief Executive Officer of Severstal NA Mr. Sergei Kuznetsov, the relinquishment of production facilities that the company acquired on the American market several years ago will make it possible for Severstal to focus on its goal of creating and running competitive businesses.

The financial advisors to Severstal were Lazard Freres & Co. LLC and Raymond James. The company’s legal advisor was Skadden, Arps, Slate, Meagher & Flom LLP.

Presently, the production assets of Northern Steel Group have the capacity of processing 1 million tons of steel products. The investment fund buyer, Aurora Resurgence and Aurora Capital has over USD 2 billion in assets under management. Severstal NA consists of five plants, including Severstal Columbus, Severstal Dearborn, Severstal Sparrows Point, Severstal Warren, as well as Severstal Wheeling. In the first quarter of the year, the production of Severstal NA increased by 6 percent, to reach 1.5 million tons. Assets of Severstal include production units in Russia, North America, Europe, and the Ukraine. The company’s General Director, Mr. Alexei Mordashov, owns 82 percent of the company.