Russian steel and mining company Evraz PLC has
announced it will sell its North American assets, which include a steel plant
in Regina that employs 1,200 people.
The UK-based company said in a press release on its
website on Wednesday that it was “initiating the process of soliciting
proposals to acquire its North American subsidiaries.”
It said this would “unlock the distinct value of
the North American business.”
Following Russia’s invasion of Ukraine in March,
the UK and Canada sanctioned Roman Abramovich, the Russian oligarch who holds a
28 percent stake in Evraz.
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In May, the UK government sanctioned Evraz PLC.
Evraz North America is headquartered in Chicago,
Illinois with Canadian offices in Regina and Alberta. It has said that it is a
subsidiary and operates independently from Evraz PLC.
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“The potential transaction is subject to regulatory
and corporate approvals as well as applicable sanctions laws and requires the
approval of the relevant sanctions authorities,” Evraz PLC’s statement said.
“Evraz does not intend to provide any additional information regarding this
proceeding unless or until the proceeding is complete.”
In June, Evraz North America said the company had
laid off 170 employees since May, with 50 to 75 more layoffs expected in the
coming months.
Michael Yeats, senior vice president at Evraz North
America, said in June the layoffs were due to the company shutting down its
bulk pipe operations.
“It’s a very cyclical business and it’s very
project-based. In fact, that operation was idle for all of 2021 and we didn’t
do anything there,” Yeats said.