DEARBORN – The Dearborn Severstal steel plant will be sold to Ohio-based AK Steel Corporation for $700 million. 

The Dearborn sale is expected to close by the end of the year. Currently, there are approximately 1,800 workers, but more work is expected at the plant. 

Severstal, owned by Russian billionaire Alexey Mordashov, received a state permit two months ago to have permission to release higher levels of pollution into the air. Residents expressed concerns about pollutant issues.

 “This is a very good transaction for Severstal. The valuation ascribed is highly attractive, and the sale of Dearborn and Columbus plants will allow the company to realize more value for the U.S. assets than it was reflected in the company’s share price,” Severstal said in a news release.

The Severstal Columbus plant will also be sold but to the Indiana-based Steel Dynamics, Inc. Severstal will be selling its Dearborn and Columbus plant for more than $2.3 billion.

“This is a very good transaction for Dearborn and Columbus,” the release said. “Both plants will get additional impetus for further growth and development and will enjoy synergies as part of larger U.S. businesses while consolidation in the North American market is gaining momentum.”