Russia’s EVRAZ PLC is seeking to divest the holdings of EVRAZ North America (ENA), which include Rocky Mountain Steel Mill, a plant in Pueblo, Colorado that produces wire rod.
The scope of the story is far larger as a key investor in the parent company is Roman Abramovich, a Russian billionaire who was on the list of oligarchs linked to Russian President Vladimir Putin. EVRAZ Plc, which purchased Pueblo’s steel mills in 2007, was hit with sanctions by the U.K. in May in response to Russia’s invasion of Ukraine.
ENA, based in Chicago, Illinois, employs more than 1,400 people in the U.S. and 1,800 in Canada, with production sites that include Pueblo, one in Portland, Oregon, and four in Canada, per the company’s website.
A report in The Pueblo Chieftain said that a letter sent by EVRAZ to ENA employees said that the “current geopolitical landscape has created a heightened level of uncertainty” over the last five months that has led to “unique challenges” in its day-to-day business operations. “However, we are in a position to change course,” the letter said. “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.”