AK Steel has announced that the company has signed an agreement to acquire Severstal North America’s integrated steelmaking assets located in Dearborn, Michigan for US$700 million in cash.

The acquisition also includes a cokemaking facility and interests in three joint ventures that process flat-rolled steel products.

The Dearborn plant produces high-quality and flat-rolled steels primarily for the automotive, construction and appliance markets.

The acquisition of Severstal Dearborn will allow AK Steel to grow its business profitability and better serve our customers, according to AK Steel.