Washington, D.C.  – Today, U.S. Representative John D. Dingell (D-MI15) issued the following statement on the Department of Energy’s announcement to deny the Severstal loan:

“I am extremely disappointed that the Department of Energy has decided not to grant Severstal an Advanced Technology Vehicle Manufacturing loan," said Representative John D. Dingell.  "In a November 18, 2011 letter, Secretary Chu stated that a DOE, ‘analysis showed there was sufficient demand in the marketplace for Severstal to provide its product to vehicle manufacturers.’  Yet I am now told that this is no longer the case with no explanation as to why.

“In that same letter, Secretary Chu noted that Severstal estimated that the loan ‘will support over 2,500 jobs during its project life.’  The Secretary also stated ‘this project is creating a meaningful impact in an area with a current unemployment rate … significantly higher than the national and Michigan unemployment rates.’  I do not understand why the Department of Energy changed its mind and suddenly does not see the merits in a project such as this.

“The $730 million Severstal would have received could have supported the company's production of lightweight, high-strength steel.  Auto manufacturers must have this kind of steel produced domestically or our auto industry will have a terrible difficulty producing vehicles to meet the strict new federal fuel efficiency standards.  This high-strength steel reduces vehicle weight thereby improving fuel efficiency without compromising safety.  This is a sad day in Southeast Michigan, a place that is continuously working hard to advance the President's goal of out-innovating and out-building the rest of the world.  I urge the Department of Energy to not turn their back on projects that create in-demand, well-paying jobs like Severstal.”

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