U.S. Energy Secretary Steven Chu has announced the offer of a $730 million conditional loan commitment to Severstal Dearborn, LLC. The monies will support the modernization of existing facilities in Dearborn, MI, as well as the design, manufacture, and construction of new facilities to produce next-generation automotive Advanced High Strength Steel (AHSS).

Severstal estimates the project will create more than 2,500 construction jobs and more than 260 permanent manufacturing jobs. Specifically, the facilities will produce a wide range of AHSS which will enable manufacturers to reduce the weight of steel components used in vehicles, and create a 10 percent reduction in total vehicle weight while meeting increasingly stringent safety regulations. The project has the potential to reduce petroleum-based fuels consumption by nearly 30 million gallons annually, and avoid over 260,000 metric tons of carbon dioxide emissions.

"By manufacturing more advanced high strength steel here at home, we rely less on imports and create thousands of new jobs that get people back to work," said Secretary Chu.