EVRAZ begins process to sell North American subsidiaries, including Pueblo steel mill

Russian steel producer EVRAZ is beginning the process to sell its North American properties, including the Rocky Mountain Steel Mill in Pueblo, the company announced Wednesday.

“EVRAZ plc announces that it is launching the process of soliciting proposals for the acquisition of its North American subsidiaries," EVRAZ said in a news release. “The sale will allow to unlock the stand-alone value of the North America business.”

EVRAZ could not immediately be reached for comment and its statement said the company “does not intend to provide any additional information on this process unless or until the process is finalized.”

The impact a sale would have on the roughly 1,100 workers at EVRAZ's Pueblo operation is currently unclear.

However, Eric Ludwig, president of the United Steelworkers 2102 Union, which represents more than 750 of EVRAZ's Pueblo employees, said the union’s contract protects its members in the event of a sale.

Ludwig said Wednesday he’d been made aware of EVRAZ's announcement but said United Steelworkers 2102 Union is currently focused on its ongoing negotiations with EVRAZ on a new contract.

EVRAZ Plc, headquartered in London, did not disclose additional details on the sale process but said in its statement the solicitation process is currently being “conducted under the Office of Financial Sanctions Implementation” in the United Kingdom.

“The possible transaction will be subject to regulatory and corporate approvals and applicable sanctions laws, and will require approval from relevant sanctions authorities, including OFSI,” EVRAZ's statement said.

Evraz Plc, which purchased Pueblo’s steel mills in 2007, was hit with heavy sanctions by the U.K. in May in response to Russia’s invasion of Ukraine, in which the U.K. froze assets for several individuals suspected of financially aiding Russian President Vladimir Putin.

Those sanctioned included Roman Abramovich, a Russian billionaire who owns more than 28% of EVRAZ PLC's total shares.

Pueblo Chieftain news partner KRDO News Channel 13 reported Wednesday it had obtained a letter sent by EVRAZ leadership to EVRAZ North America employees saying the “current geopolitical landscape has created a heightened level of uncertainty for EVRAZ North America (ENA) over the last five months, leading to unique challenges” in the day-to-day operations of its business.

“However, we are in a position to change course,” the letter said, according to KRDO. “In response to today’s reality, and to best position our organization for long-term success, EVRAZ plc, the parent of ENA, has made the difficult decision to begin a sales process of the North American business."

EVRAZ North America is a wholly-owned subsidiary of EVRAZ Plc, a public company incorporated under the laws of the United Kingdom, Annie Stefanec, director of communications for EVRAZ North America, told The Chieftain in March.

The North American subsidiary operates independently in the U.S. and Canada in all areas including procurement of raw materials, operating production facilities and corporate financing, Stefanec said.

EVRAZ North America is headquartered in Chicago, Illinois, and employs more than 1,400 people in the U.S. and 1,800 in Canada. The company has six production sites including its location in Pueblo, one in Portland, Oregon, and four in Canada, according to the company’s website.

The company is the largest North American producer by volume in the rail and large diameter pipe markets.

Chieftain editor Zach Hillstrom can be reached at zhillstrom@gannett.com or on Twitter @ZachHillstrom

This article originally appeared on The Pueblo Chieftain: Evraz seeks to sell North American business, including Pueblo mill