Russia's largest steelmaker by production, OAO Severstal, is mulling to finalize a strategy for its unprofitable North American unit; but will cling on to the most competent operations.

The second quarter for the unit was unlucky as it had to suffer a loss of $236 million before interest, tax, depreciation and amortization. The Cherepovets-based company said in a statement that a $290 million net loss was posted by the unit overall, compared with net income of $1.5 billion a year earlier.

The statement continued, "We are committed to operating in North America. We will retain our most efficient units with a view to making them even more flexible and efficient."

Since 2004, a sum of $3.7 billion has been spent by Severstal with the aim of acquiring assets in the region, with the unit accounting for 21 percent of revenue in 2008. The company was compelled to idle steelmaking at its Severstal Wheeling and Severstal Warren businesses in the U. S. due to fall in steel demand in the fourth quarter of last year.

The company, whose sales plunged 54 percent to $2.85 billion, registered $167 million foreign exchange gain. The company did not propose any dividend for the quarter, but said that it does not hope to make any full-year payment.

A second-quarter Ebitda loss of $86 million was posted by Severstal's Lucchini European unit.

Chief Executive Officer Alexei Mordashov said in the statement: "Since June, there have been indications of some improvements in our markets, with production volumes and prices increasing so far in the third quarter. Although these developments are encouraging, they remain fragile."