Russian steelmaker PAO Severstal invested about US$6 million in Michigan-based Arcanum Alloys Inc., which develops innovative alloys used in making cars, appliances and construction material.
The company said Sept. 17 that it expects to receive financial returns from the investment and will offer Arcanum's products to its global customers. The company plans to produce steel using Arcanum Alloys technology during a pilot program at its Cherepovets steel mill in 2020.
Severstal, which has an annual investments budget of about US$25 million, said it is working to complete several similar deals by the end of the year.
In February, the company outlined plans to invest 95.7 billion Russian rubles in its Russian steel and resources divisions in 2019.
For the second quarter, Severstal posted net earnings of US$475 million, decreasing year over year from US$557 million, as revenue fell to US$2.18 billion from US$2.26 billion. Crude steel output for the period remained almost flat quarter on quarter at about 3 million tonnes.
As of Sept. 16, US$1 was equivalent to 63.93 Russian rubles.
