The Russian steel and mining company Evraz PLC has announced it plans to sell its North American assets, which include a steel plant in Regina that employs 1,200 people.
The U.K.-based company said Wednesday in a news release on its website it is "launching the process of soliciting proposals for the acquisition of its North American subsidiaries."
It said doing so would "unlock the stand-alone value of North American business."
Following Russia's invasion of Ukraine in March, the United Kingdom and Canada sanctioned Roman Abramovich, the Russian oligarch who holds a 28 per cent ownership stake in Evraz.
In May, the U.K. government sanctioned Evraz PLC.
Evraz North America is headquartered in Chicago, Ill., and has Canadian operations in Regina and Alberta. It has said it is a subsidiary and operates independently of Evraz PLC.
"The possible transaction will be subject to regulatory and corporate approvals and applicable sanctions laws, and will require approval from relevant sanctions authorities," the Evraz PLC statement reads. "Evraz does not intend to provide any additional information on this process unless or until the process is finalized."
In June, Evraz North America said the company had laid off 170 employees since May, with 50 to 75 more layoffs expected in the coming months.
Michael Yeats, a senior vice-president within Evraz North America, said in June the layoffs are due to the company idling its large-diameter pipe fabrication work.
"It's a very cyclical business and it is very project-based. In fact, all of 2021 that operation was idled and we weren't doing anything there," Yeats said.