Welcome to the Business Journal Archives
Search for articles below, or continue to the all new BusinessJournalDaily.com now.
Search
New Owners of Steel Mill Report 'Progress'
WARREN, Ohio – The new owners of the former RG Steel plant say they're making progress toward assessing whether the Pine Avenue mill could be restarted and sold, and reported several parties taking interest in the plant are continuing their due diligence.
A press release issued by BDM Warren Steel Holdings LLC said that the company has been in contact with some parties interested in operating portions, or all, of the mill, but "no definitive offers to operate have been made."
Meantime, the new owners are working to transfer ownership of the on-site boiler and power plant to ArcelorMittal, which owns a coke-manufacturing complex next door.
The transfer is necessary to preserve the 20 or so jobs associated with Arcelor's operation, the company said. BDM will retain leaseback rights to the boiler for future steelmaking operations should an operator for the plant emerge.
BDM also announced it has hired Michael Bechtold as the plant's general manager, and has hired Al Greenwalt and David Hogan to assess the probability of the mill returning to operation and the winterization process.
The company said that it has approached the state of Ohio for immediate assistance related to support for winterizing the plant's equipment and asset protection. Certain steps toward winterizing the plants are under way, BDM said.
BDM added that its representatives have met with federal, state and local officeholders in order to secure support for this project. The company has also met with members of the United Steelworkers union and explained its plans to them.
Charles Betters, president of Betters Enterprises, created BDM as a partnership to acquire the plant after RG Steel filed for Chapter 11 bankruptcy. The company closed the deal on Sept. 12 and purchased the mill for $17 million.
About 1,000 steelworkers are on layoff, and a small maintenance crew is working on site trying to preserve the company's equipment.
Copyright 2012 The Business Journal, Youngstown, Ohio.