AP: Private firm Renco to buy Severstal steel plants

[Omaha Steve]

http://www.omaha.com/article/20110303/AP05/303029905

By VICKI SMITH

MORGANTOWN, W.Va. (AP) - Severstal North America said Wednesday the private equity firm Renco Group Inc. is buying steel operations in four states in a $1.2 billion deal that includes the repayment of $317 million in debt.

Russian-owned Severstal will sell the former Wheeling-Pittsburgh Steel facilities in the Ohio Valley, including Wheeling Corrugating in Wheeling, W.Va., and the Allenport facility in Allenport, Pa.; the former WCI Steel facility in Warren, Ohio; and the former Bethlehem Steel facility in Sparrows Point, Md.

The deal also includes 50 percent ownership of Mountain State Carbon, a coke plant in Follansbee, W.Va., and Ohio Coatings in Ohio.

Severstal will get $125 million in cash and a $100 million secured note, as well as the repayment of debt. New York-based Renco also assumes labor and environmental liabilities totaling $650 million.

Renco says the deal will make its newly formed subsidiary, RG Steel, the fourth largest flat-rolled steel producer in the U.S. Flat-rolled steel is used in vehicle bodies.

FULL story at link.