September 17, 2019
PAO Severstal (MICEX-RTS: CHMF; LSE: SVST), one of the world’s largest
vertically integrated steel and mining companies, announces that it has
invested in Arcanum Alloys, Inc., a Michigan-headquartered company that
develops innovative steel-based alloys. Severstal is the lead investor of the
round, investing approximately six million dollars in this funding round. Among
other major investor in the company is the leading American venture capital
firm Khosla Ventures.
Arcanum Alloys, Inc. has developed a unique technology for the production of
surface optimized diffusion alloys. With this platform technology, the company
is able to produce a wide variety of products with enhanced properties. Their
first product offers aesthetic and corrosion properties equivalent to stainless
steel, but with superior formability and at lower operational and capital
costs. These products are targeted at customers in the automotive and
construction industries as well as manufacturers of household appliances.
George Gogolev, Head of Severstal Ventures, commented:
“We are delighted to announce Severstal’s investment in Arcanum Alloys,
Inc., which we believe is a leading innovative metallurgy company. By
increasing our exposure to the latest technologies and alternative methods for
producing different types of steel, we continue to expand Severstal’s
competitive advantages and drive innovation in the steel industry. The Company
expects to receive financial returns on its investment in Arcanum Alloys, and
also to become one of the first globally to be able to offer these products to
its customers. Severstal plans to present to our clients steel produced using
Arcanum Alloys’ technology on our pilot production at Cherepovets Steel Mill in
2020.”
Andrey Laptev, Director of Business Development and Corporate Venture
Projects at Severstal, said:
“I would like to congratulate our team on its first direct investment in a
promising venture project. Russia remains a big net importer of stainless
steel, with this innovative product we hope to offer to our domestic clients a
better alternative to certain stainless steel grades. This deal is closely
aligned with Severstal’s strategic focus on new business opportunities. It
complements our previous investments into high profile venture funds, which
have given us access to a huge pipeline of projects and technologies. Severstal
aims to support great high-tech entrepreneurs in the global steelmaking
industry, including helping them to enter and develop in Severstal’s key
markets as well as providing them with platforms for pilot and acceleror
programmes. We are working on several similar deals concurrently, which we hope
to complete by the end of this year. Severstal Ventures’ annual investments
amount to around 25 million dollars.”
Dan Bullard, Founder and CEO of Arcanum Alloys, said:
“This is an extremely exciting day for Arcanum Alloys. We are very excited
to be working with Severstal. This investment allows us to continue to scale
our technology, get our products to our customers, and, ultimately, carry out
our mission to redefine the sheet steel industry.”
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