Judge Okays Bidders for Some Ohio Valley Steel Plants

A U.S. Bankruptcy Court has begun to break up RG Steel’s assets, partially deciding the future of some of the firm’s Ohio Valley plants.

Industry sources say Judge Kevin Carey has approved Frontier Industrial Corporation’s $20 million bid for the Mingo Junction Plant.

USW local 1190 president Ernie Gambellin was one of about nine union members who traveled to Delaware to hear first hand what happened.

Gambellin said he met with Executive Vice President and General Counsel Craig Slater of Frontier.  What he heard was positive.  Slater told steelworkers he plans to immediately scrap some of Mingo’s older facilities — but not newer assets.

“He [Craig Slater] assured us he will not scrap our valuable assets which we consider the Electric Arc Furnace , the Caster and the 80 inch,” Gambellin said in a telephone interview. “We assured Mr. Slater the United Steelworkers are looking forward to continuing talks with the vision of making steel in the Ohio Valley.”

Gambellin also has cautious optimism after learning that Frontier already had a meeting with an operating team interested in making steel in Mingo.  He characterized the talks as “preliminary”, and said Frontier wants a third-party investor as part of their team.

Also a done deal is Wheeling Businessman Quay Mull’s $2 million bid for the Martins Ferry Steel Plant.

7News has also learned the bankruptcy hearing concerning Esmark and the Yorkville plant has been delayed a few days.  That same hearing will also deal with the future of the Wheeling Corrugating plant in Beech Bottom, West Virginia.  It’s expected to happen next Wednesday.

 

Source: WTRF.com