Double Eagle Steel to close in 2015

By BOB OLIVER
Times-Herald Newspapers

DEARBORN – The Double Eagle Steel Coating Co. will close by the spring of 2015.

The company, at 3000 Miller Road, is jointly owned by Severstal North America and the United States Steel Corp. Severstal announced the closing of the plant on July 15.

The company has 126 employees, and all but five are Severstal employees. No information has been released regarding whether those employees will transfer to Severstal or be released.

According to Severstal, “over the past several years, there has been a significant decline in the market demand for electrogalvanized products and a shift toward the new hot dip coated technology.”

This decline led Severstal and U.S. Steel to conclude that “that the economic viability of EG production at Double Eagle could no longer be maintained.”

Severstal Dearborn launched a $285 million hot dip galvanizing line last year. The new line features advanced technologies with “consistent coating thickness and excellent surface texture for exposed and unexposed automotive applications.”

With this change, the company expects to transition from EG to HDGL galvanized products by the first quarter of 2014.

Severstal North America CEO Sergei Kuznetsov said the company “would like to thank our long-term partner in this venture, United States Steel Corporation, for their years of productive and mutually-beneficial cooperation.”

“We would also like to thank all of the customers, employees and the local community for their support through the years,” Kuznetsov said. “As the time has come to end this partnership, we will work harder to meet the demands of our customers and provide the highest-quality of coated advanced high strength steels available on the market.

“The new products off our existing facilities will deliver all the benefits of our highly skilled workforce, technology and equipment.”

(Bob Oliver can be reached at boliver@bewickpublications.com.)

Tags: