"We believe that we should continue investing in the United States. Total investment will hit around $6 billion by the end of next year," Severstal CEO Alexei Mordashov said on Tuesday at the 16th annual session of the U.S.-Russian Business Council in Washington.
Severstal, which accounts for over 16% of Russian steel output and has production facilities in Russia, the United States, Italy, France, Britain, and Ukraine, produced 17.5 mln metric tons of steel and reported $15.2 bln in revenues in 2007.
Mordashov said the investment would go toward purchasing and modernizing new production facilities in the United States.
The Russian steelmaker is currently in the process of finalizing a deal to buy the U.S. PBS Coals Corporation (PBS).
In August, Severstal completed the acquisition of Esmark Incorporated, a U.S. manufacturer and distributor of flat rolled and other steel products. Esmark, now a wholly-owned subsidiary of Severstal, has already been renamed the Severstal Wheeling Holding Company.
In July 2008, Severstal acquired a 100% stake in WCI Steel, Inc.
