Posted on 03/21/2008 1:23:00 PM PDT by lisagolden
Russian steelmaker to buy Sparrows Point OAO Severstal says it has agreed to purchase Balto. Co. mill for $810 million Russian steelmaker OAO Severstal said early this morning that it has reached an agreement to purchase the Sparrows Point steel mill in Baltimore County for $810 million.
It will be the plant's fourth owner in four years. The 119-year old steel mill employs 2,450 hourly and salaried workers and has the capacity to produce 3.6 million tons of steel a year. The sale, which faces several regulatory approvals, is expected to close during the second quarter of the year. Related links Sun coverage:
Sparrows Point sale Severstal said in a prepared statement that the company and the United Steel Workers have agreed to enter into a collective bargaining agreement.
The acquisition will add to Severstal's U.S. holdings, which include operations in Dearborn, Mich., and Columbus, Miss. "With Sparrows Point, Severstal brings into its U.S. portfolio an asset with significant existing value as well as unlocked growth potential," Severstal CEO Alexei Mordashov said in a statement.
The Justice Department ordered Mittal Steel Co. NV of the Netherlands to sell Sparrows Point in February 2007.
The department had antitrust concerns related to Mittal's acquisition of Arcelor SA of Luxembourg, another large international steelmaker. Mittal agreed to sell off Sparrows Point, and that agreement allowed it to complete the merger creating ArcelorMittal.
In August 2007, ArcelorMittal agreed to sell to E2 Acquisition Corp., a consortium of steel companies led by Chicago-based Esmark Inc. That deal was for $1.35 billion. But "it became increasingly more apparent" that E2 couldn't pull together the financing and never reached the necessary agreement with the United Steel Workers, according to a court filing last month by the Justice Department's trustee, Joseph G. Krauss.
(Excerpt) Read more at baltimoresun.com ...
Selling off America is the thing now a days.
My cousin used to work there.
The sell out of America continues!!!!!!!!!!!!!!!!!
Banking establishments are more dangerous than standing armies.
Thomas Jefferson
This was a Bethlehem Steel plant for years and years. Bethlehem had an ore carrier on the Great Lakes named for the mill.
“Selling off America is the thing now a days.”
A sale from a Dutch to a Russian company is selling off America??? Or maybe, just a part of being in a global economy.
If US ownership was a concern, the Union should have been more accommodating to the Chicago company that wanted to buy it.
you miss the point
I wish they would have bought the O’s from Angelos.
Maryland “Freak State” PING!
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