Russian Evraz has launched the process of selling its North American division

The Russian steel producer Evraz has started collecting applications for the acquisition of its North American division of Evraz North America company. It is reported by Reuters.

The sale will help unlock the value of its North America business as an independent company.

Collection of applications is conducted under a general license issued by the UK’s Office of Financial Sanctions Implementation (OFSI).

“Recent geopolitical tensions have given rise to significant corporate governance and operating challenges for Evraz,” commented the company’s CEO Oleksii Ivanov.

The North American division of Evraz has six factories: in Portland (Oregon, USA), Pueblo (Colorado, USA), Regina (Saskatchewan, Canada), Calgary, Camrose and Red Deer (Alberta, Canada).

The revenue of the steel segment of the North American division last year increased by a third, to $2.3 billion, EBITDA amounted to $321 million against a negative value of $28 million a year earlier.

Evraz is a large vertically integrated metals and mining company, one of the largest producers of vanadium in the world. The largest shareholder is Roman Abramovich, which owns 28.64% of Evraz.

As GMK Center reported earlier, at the beginning of May Russian Evraz received a license in the UK, which allows the commercial activities of its subsidiaries in North America. Prior to this, the British authorities announced the inclusion of the company in the sanctions list, which involves freezing assets.