Sparrows Point up for sale, company mum, workers bracing for layoffs

[Omaha Steve]

http://www.baltimorebrew.com/2010/08/11/is-sparrows-point-up-for-sale-company-mum-workers-bracing-for-layoffs/

Finishing operations will be temporarily closed next week, leaving about 90% of the plant idle.

Mark Reutter 2 days ago, August 11, 2010 Story Link

Sparrows Point is up for sale by its Russian owner, union and industry sources told the Brew, confirming reports in an industry newsletter. Meanwhile, rank-and-file employees brace for layoffs and managers prepare to temporarily idle some operations next week.

The United Steelworkers Union (USW) is spearheading efforts to find a new owner for the troubled steel mill controlled by Russian billionaire Alexei Mordashov, founder and CEO of Severstal, the Brew has learned.

Sparrows Point is not the only Severstal operation being shopped around. The company’s North American division is also soliciting bids for its money-losing mills in Ohio and West Virginia, according to a report by Metal Bulletin.

Several foreign companies are reportedly mulling a bid for Sparrows, including Germany’s ThyssenKrupp and Brazil’s CSN. Two domestic companies, U.S. Steel and AK Steel, have reportedly looked over the property.

Whether potential buyers will actually submit bids that are acceptable to Severstal is an open question. Severstal purchased the mill in May 2008 for $810 million. Four months later, the world recession sent steel prices tumbling. Since then, Sparrows Point has not made a monthly operating profit, according to management sources.

Asked about a potential sale, Marika Diamond, spokesperson for the company, replied today by e-mail, “It is Severstal’s policy not to comment on market rumors or speculation.”

Finishing Mills to be Idled Next Week

On Sunday the company plans a two-week outage of all but one of its finishing mills, the Brew has learned. The facilities will include the hot-rolled, cold-rolled, galvanizing and coated steel mills, which produce the bulk of product.

Only the tinplate operation, which makes specialty steel for the container industry, will remain open.

FULL story at link.

[madrchsod]

1. another one bites the dust....

and the south gets another non union low wage mill...


where`s that card check?