Reporting Jeff Gilbert
A local steelmaker is obtaining a $730 million loan from a allied agenda aimed by production vehicles more fuel effective.
The money will go to Severstal Dearborn, which now owns and operates the plant on the big Rouge intricate. It will be used to convert the plant to building high strength steels, that will go into future cars.
“Today’s announcement will build jobs, strengthen our manufacturing industry and assist our automakers compete in a universal mall,” said Energy Secretary Steven Chu, in a session call with correspondents.
The Energy Department says the loans will create 2500 construction jobs, and 250 permanent manufacturing jobs.
This is portion of a $25 billion federal program that — prior to this proclamation — had merely granted $8.4 billion in loans. Chrysler has been waiting word on its loan application for more than two years. General Motors recently withdrew its request.
Chu would not remark on additional loan applications. Previous loans below this program have been granted to Ford, Nissan and electric carmakers Fisker and Tesla.
This is the 1st period this program has been accustomed to loan money to a company other than a carmaker. However, Chu said Severstal qualified for one auto supplier, since the high strength steel it will make, is going to be secondhand for vehicles of the future.
“The progressive steel produced at the facilities will enable car contractors to dilute the total vehicle weight by ten per penny, meantime meeting increasingly stringent safety requirements,” he said.
Analysts mention vehicles will have to be lighter in the hereafter to encounter increased fuel economic requirements.
Senator Carl Levin complimented Severstal’s goodwill to make a huge investment to upgrade the aging Dearborn facility that was once a part of Ford, and used to be called Rouge Steel.
“They’ve shown confidence in Michigan, in America, in American manufacturing by their commitment of numerous, many greenbacks, about two billion greenbacks, in this plant,” he said.
Levin mentioned that he’s immediately driving a Chevy Volt, which has several steel parts invested by Severstal.
Other lawmakers with knots to Dearborn were cheerful apt hear almost the investment.
“It’s going to make my congressional district green, said Congressman John Dingell. “I absence you to understand I’m quite pleased.”
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