Esmark Inc. buys Ohio steel plant
Esmark Inc. has purchased an idled steel finishing mill in Yorkville, Ohio, and a 50 percent interest in a tin plate production plant for a combined $6.25 million from bankrupt RG Steel LLC.
The Sewickley-based company plans to spend about $15 million to restart the steel plant in January and bring back about 160 employees represented by the United Steelworkers, said James P. Bouchard, Esmark president and founder.
The Yorkville cold-rolled steel plant that originally was part of Wheeling Pittsburgh Steel Corp. will be renamed Ohio Cold Rolling Co. and will be majority owned and operated by subsidiary Esmark Steel Group, a steel servicer that sells flat-rolled and other products.
James Ledgard, Wheeling Pittsburgh's former chief operating officer, was named CEO of Ohio Cold Rolling. The mill has been closed since July.
Ohio Coatings Co., the tin plate facility about a mile and a half from Yorkville, is a joint venture with TCC Steel of South Korea. Sixty workers are employed at that plant.
Industry analyst Charles Bradford of Bradford Research Inc. of New York said low prices for scrap metal could benefit firms such as Esmark, which can order materials during the down period in time to begin production early next year.
“The steel industry does better when scrap prices are up, and the hope is that it will have a seasonal recovery before the end of the year as firms order now for production next year,” Bradford said.
The acqusitions are part of Esmark's effort to return the company to $1 billion in revenue in 2013, Bouchard said. He sold the original Esmark Inc., which included Wheeling-Pittsburgh Steel Corp., to Russian steel maker OAO Severstal for $775 million in July 2008.
Bouchard formed Esmark Steel Group a year later. Severstal sold much of its steel holdings in the U.S. in March 2011 to the newly formed RG Steel, which declared bankruptcy in May.
Before the latest deal, Bouchard already had repurchased three plants that were part of the sale to Severstal four years ago: Sun Steel Inc. and Century Steel Inc., both in Chicago Heights, Ill., and Independent Steel Co. in Cleveland.
Esmark also owns Excalibur Machine Co. in Meadville, and will move into a new Sewickley headquarters in early 2013.
Sam Spatter is a staff writer for Trib Total Media. He can be reached at 412-320-7843 or firstname.lastname@example.org.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Steelers kicker Boswell puts best foot forward
- Steelers notebook: Tomlin not grooming successor to RB Williams
- Penn State football coach Franklin renews his plea for patience
- Former Mountaineer Bailey shot in head in Miami
- Putin sends air defense missiles to Syria to deter Turkey
- Hempfield man fights off intruders
- North Shore parking garage plan moves forward in Pittsburgh
- H&M to open in Westmoreland Mall
- Occupying playoff spot on Thanksgiving good harbinger for Penguins
- Pittsburgh man charged with 56 counts after high-speed chase over weekend
- 2nd command officer at Allegheny County Jail punished