Indian steelmakers eying RG Steel assets in Mingo Junction in US

Tribunal Today reported that steelmakers from India are interested in restarting at least part of the silent RG Steel facility in Mingo Junction which contains the USD 115 million electric arc furnace.

Mr Craig Slater general counsel and vice president of Frontier Industrial, owner of the Mingo site, said that several potential operators have looked at the plant, including some from India including Essar Steel, Jindal Steel and Tata Steel.

Mr Slater said that “We know people are interested in what’s going on. We are willing to wait to see what kind of deal we can come up with.”

Mr Slater also noted that the Mingo facility’s blast furnace does not appear to be part of its future. He said that “We removed the old ore bridge. None of the folks we have been talking to plan to use the blast furnace.”

Essar Steel made a bid to purchase all the former Wheeling-Pittsburgh Steel Corp. facilities in 2008 then owned by Esmark Inc but United Steelworkers members eventually voted to sell to OAO Severstal for USD 4.7 million. Severstal later sold the plants to RG Steel which filed for bankruptcy and liquidation last year.

Mr Slater’s company purchased the entire Mingo plant property including the electric arc furnace for USD 20 million as part of RG Steel’s liquidation. Since the summer Mr Slater has been working with a number of potential partners that could help reopen the plant.

Source – www.steelguru.com