AP Sources: Russian steelmaker to get US loan

July 12, 2011 - 5:44 PM

DETROIT (AP) — Two people briefed on the matter say the North American arm of Russia's largest steel company is getting a $730 million loan from the U.S. government.

They say Severstal plans to modernize a plant in Dearborn, Mich., that makes steel for the auto industry. The project will employ around 2,500 construction workers and create 260 factory jobs.

The people asked for anonymity because the Department of Energy wasn't expected to make the announcement until Wednesday morning.

The money comes from a $25 billion low-interest loan program created in 2007 to help car companies retool older factories to build green cars.

Severstal bought the Dearborn factory in 2004.

Severstal North America is a unit of OAO Severstal, which is one of Russia's largest steelmakers.