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Warren Steel Begins Site Revitalization Project
WARREN, Ohio -- Warren Steel Holdings is beginning a “site revitalization project that will result in all unused, nonessential buildings being torn down,” the company announced Wednesday.
Warren Steel Holdings, which resumed operations Aug. 7 following the negotiation of lower electricity rates, produces high-quality carbon and alloy steel continuously cast products (READ STORY).
The company said it would process and melt all usable scrap metal for use in the manufacture of its products and “responsibly” dispose of materials that cannot be reused. The demolition project is expected to continue for as long as 24 months, the company said. Once the project is complete, the site will feature only buildings that host a critical function of WSH’s operations.
“This is a project we have considered for some time as a way to improve the site for the betterment of the community and the business,” said John Scheel, vice president. “By tearing down all non-functional, dilapidated buildings and recycling the steel scrap, we are able to effectively accomplish both objectives. We look forward to operating a leaner, more aesthetically pleasing site that better reflects the next chapter in WSH’s history.”
Under terms of the agreement with the Public Utilities Commission of Ohio that granted Warren Steel lower electricity rates, making resumption of its operations competitive, the company committed to employing 200 direct employees and 25 contract employees after the first full month of restarted operations. The company also committed to $10 million worth of capital investment and major repairs over the first 12 months, and $33 million in capital improvements over the length of the PUCO agreement.
Warren Steel Holdings, formed as an LLC in 2001, purchased the 369-acre site at 4000 Mahoning Ave. after CSC, formerly the Copperweld Steel Co., filed for bankruptcy that year and closed the mill. Warren Steel also purchased CSC's newly installed melt shop and continuous caster.
In 2007, Warren Steel began hiring and training a new workforce, and steelmaking operations resumed at the site in 2009.
Since 2009, the company says it has pumped in $90 million worth of ownership capital contributions, has loans exceeding $60 million, provided other capital investment of more than $24 million, and has tallied working capital expenditures of $125 million.
Copyright 2014 The Business Journal, Youngstown, Ohio.
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