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Renco Group buys Sparrows Point

Sparrows Point to become headquarters of new steel group

New York Philharmonic Opening Night Gala

Meet the new boss: Ira Rennert, whose Renco Group just announced its purchase of Sparrows Point.

Photo by: forbes.com

The Renco Group has just announced that it signed a purchase agreement to buy Sparrows Point and two other steel mills from Severstal North America in a transaction estimated at $1.2 billion.

The sale — which culminated following weeks of secret negotiations as reported exclusively by The Brew — represents a huge loss to Severstal, which purchased the three steel mills and related facilities for about $2.4 billion in 2008, including $810 million for Sparrows Point alone.

Renco will be the fourth owner of the Baltimore County steel plant in eight years, following the bankruptcy and liquidation of Bethlehem Steel.

The latest sale follows an especially tumultuous period under Severstal’s ownership, where the steel mill has experienced numerous production problems and a loss of its traditional customer base.

Sources today told The Brew that Renco expects to restart “L” blast furnace and other now-idled production units once the deal is finalized later this month.

The plant, however, will face numerous challenges getting production up to capacity and turning a profit in a very competitive industry.

Headquarters for Steel Group

It was also announced today that Sparrows Point will become the headquarters of the newly created RG Steel, a subsidiary of Renco Group.

Ari Rennert, president of Renco and son of founder Ira Rennert, said this morning: “The formation of RG Steel will created a dynamic, service-oriented company with strategically located facilities led by newly appointed president and chief executive office, John Goodwin.”

Goodwin was formerly chief operating officer of International Steel Group (ISG), which owned Sparrows Point between 2003 and 2005.

In addition to Sparrows Point, today’s agreement calls for RG Steel to purchase Severstal Warren in Warren, Ohio and Severstal Wheeling in Wheeling, WVa, as well as a 50% interest in Mountain State Carbon and Ohio Coatings Co.

The purchase will give RG Steel about 7.5 million tons of annual steelmaking capacity, making it one of the largest integrated steel operators in the U.S.

A spokesman for Maryland Gov. Martin O’Malley said the sale is “very good news.”

“The governor has been very involved in finding a way to save jobs at the plant and respect the dignity of workers who have made lifetime careers there and this (sale) appears to do just that,” Saun Adamec, the governor’s press secretary.

Adamec also hailed the news that the company overseeing the three plants is going to be headquartered locally: “that’s more good news for Maryland.”

Employees Asked to Report to Work

Currently, about 850 steelworkers – or half the unionized force – are on layoff at Sparrows Point. It is not known how many workers will return to their jobs.

Maintenance employees told The Brew that they are being asked to report back to work.

Renco also confirmed this morning an earlier Brew report that it signed a labor agreement with the United Steelworkers (USW) and agreed to keep wages at Sparrows Point at their present level, which are about $3 an hour less than the national pattern contract.

Completion of the sale to Renco is dependent on regulatory approval in Washington. Renco is a privately owned holding company with stakes in numerous mining and other manufacturing industries.

- Mark Reutter can be reached at reuttermark@yahoo.com

———————–


Here’s text of the press release sent out this morning by Severstal North America:

Severstal North America Sells Warren, Wheeling, and Sparrows Point Facilities

DEARBORN, Mich. March 2, 2011 – Severstal North America, a subsidiary of OAO Severstal, today announced that The Renco Group, Inc. has signed a definitive agreement to purchase Severstal’s operations at Warren, OH, Wheeling, WV, and Sparrows Point, MD. The transaction is expected to close in March 2011, and is subject to customary closing conditions, including expiration or early termination of the Hart-Scott-Rodino waiting period.

As transaction consideration, Severstal will receive $125 million in cash, a $100 million secured note, and the repayment of $317 million of third-party debt at closing. Renco will also assume various Severstal financial liabilities including employee-related and environmental liabilities totaling $650 million.

The Renco Group, Inc. is a family owned, private holding company that makes long term investments in companies across a range of industries including mining, mineral recovery, metals production / fabrication, defense, and automotive supply industries.

“The sale of Warren, Wheeling, and Sparrows Point marks a strategic refocusing of our North American operations,” said Sergei Kuznetsov, CEO of Severstal International. “The sale of these assets will enable Severstal North America to evolve into a stronger and more focused organization that is better able to serve our North American customers,” Mr. Kuznetsov concluded.

Evercore Partners is acting as Severstal’s financial adviser, and Skadden, Arps, Slate, Meagher & Flom LLP are acting as Severstal’s legal advisers.

————–

– Test of press release today from Gov. O’Malley’s office:

RG Steel LLC to return, retrain and retain nearly 2,000 steelworkers in Maryland

ANNAPOLIS, MD (March 2, 2011) – Governor Martin O’Malley issued the following statement today on Severstal’s agreement to sell its Sparrows Point steel plant to RG Steel LLC:

“The announcement today that RG Steel Inc. has agreed to purchase the Sparrows Point mill from Severstal US Holdings LLC holds the promise that the plant’s long tradition of manufacturing and steel production – and of providing jobs with family-supporting wages – will continue.

“For generations, Sparrows Point has been a major employer and a significant economic asset for the State. We welcome RG Steel and its headquarters to Maryland and stand ready to help the company and the United Steelworkers return, retrain and retain nearly 2,000 steelworkers in Sparrows Point.”

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  • MINGO MAN

    OK_It’s about time- lets all work together now-PLEASE? ( mingo man)

    • SUGAR

      You think Ira will send the Mingo Plant ” A Bone or Two”

  • bert

    About time we here something, even though it doesn’t say anything about a start up or give us any timeframe of events upcomming.

  • Gable Clarks

    well, this confirms what we all knew

    that is, tableclocks is full of sh*t

    • 38yr vet

      If Sparrows starts producing again and Mingo starts up what will happen to Warren? 50% of Warren’s hot mill going for tinplate at Sparrow’s and most of the rest to Yorkville and Martin’s Ferry. Finishing facilities at Warren have been down and are falling apart. Really big expense if restart is planned.

      • Realist

        38 yr vet, I wouldn’t worry about Warren. The steel coming to the Sparrows Point Tin Mill has been crap at best. Sparrows Point makes much better steel. The Warren hot bands have been part of the reason customers have been fleeing. Maybe Sparrows Point hot bands will restore some faith. As far as Mingo goes, they don’t have the talent to start that furnace back up. All of the key personnel are scattered around the country. And honestly we have lost many key people at Sparrows Point. Would rather see them end up there instead. L furnace when running right can supply all three facilities with steel.

        • Blast Furnace Man

          Realist
          You must be Pinocchio’s brother.Because you look down that long nose of yours and think that Wheeling & Warren are expendable. Have you ever been to either? I believe you are wrong. You seem to think you are qualified to judge what is good steel & crap simply by where it was made. Kind of arrogant huh ? On the subject of customers leaving has to be someone elses fault, Sparrows Point couldn’t possibly need to shoulder some blame. Again, you are deluding yourself and you call yourself a realist. Then, you say #5 blast furnace will not start because the talent needed to operate it has been scattered all over America by the wind. You are partly right, but mostly wrong. The talent is scattered, but all over the coke plant. It is just a matter of crossing the Market St. Bridge and heading South to Mingo and # 5 will be running again. None of us or the mills we work at are perfect. Try realizing that!

        • Blast Furnace Man

          Realist
          You must be Pinocchio’s brother.Because you look down that long nose of yours and think that Wheeling & Warren are expendable. Have you ever been to either? I believe you are wrong. You seem to think you are qualified to judge what is good steel & crap simply by where it was made. Kind of arrogant huh ? On the subject of customers leaving has to be someone elses fault, Sparrows Point couldn’t possibly need to shoulder some blame. Again, you are deluding yourself and you call yourself a realist. Then, you say #5 blast furnace will not start because the talent needed to operate it has been scattered all over America by the wind. You are partly right, but mostly wrong. The talent is scattered, but all over the coke plant. It is just a matter of crossing the Market St. Bridge and heading South to Mingo and # 5 will be running again. None of us or the mills we work at are perfect. Try realizing that!

  • PATRIOT

    Thank you Baltimore Brew for this very important info. Our Leadership once again has abandoned its membership The International and Local 9477 United Steel Workers. So as I mentioned before New owner, now is the time to do some Serious shopping for a New Union to Represent all of us at Sparrows Point.

  • Bocephusjr

    Maybe there is a rainbow? Hope this lights a fire under someone’s butt and things will be done the correct way now we have been sold. It will probably take many weeks to get up and running I guess. But, that is a start. Now, let just start makin some $$.

  • mingo man

    Mr. McCalll_ what happened to the ‘pattern’ agreement- we waited all this time for 3 bux an hour less than the rest of the industry? ( according to BALT> brew)

    • beenlaidoff

      here we go gentlemen,once again sparrows point gets screwed.3 bucks an hour less then everyone else represented by the usw.go figure.but,i guess we still have a job.im sure thats what we will here.i think we should sue the union for all the money lost over the last 2 and a half years.think about it,its there fault we didnt get the contract 2 and a half years ago.they kept extending it.and for what reason.we should have threatened a strike just like mittal did.we was very busy back then.so the usw should be held liable for there misrepresentation. beenlaidoff

      • OFF TWO YEARS

        Sparrows point gets screwed? what about warren and wheeling plants? WE’RE all in the same corp!! No ,I’m not makin 3 bux less cuz I’m not workin- 40 years in mill an still can’t retire. I got 84 grand for my first 35 years. My health insurance would be 564$ a month -how long would that last? Oh boy : I get to go to coke plant and bump my son!!

        • Tableclocks moe moe

          after 40 yrs you should have saved more money….so where did u spend it all ??

          • mingo man

            I did save more money- its called a 401- I was referring to the amount they gave us when they bought out our our pensions

        • bert

          Not too big on financial planning huh? Me neither I have to work till 6 years after I’m dead.

        • sick of it

          You are something else!!!!! You sound like you are proud to “bump” your son!!!! Im sure you will be a pleasure to work with. Nothing but greed!!!

          • mingo man

            Greed? I have been off two years. If I dont go back now I lose my insurance – I could have bumped two years ago. My “son” was a figure of speech – a lot of us have sons, brothers nephews and daughters there. Think about it – You want to work your job – I want to work mine. But when I had ten twenty and thirty years and got bumped it was ok because the man was older – its called seniority.

          • sick of it

            Best of luck to you!!!! I hope they get your plant rolling!!

          • Willow

            seniority is no more at 1190, sorry, i know what my vote will be.

  • mad mill man

    gee, i wonder why they didn`t say anthing at the union meeting last night! they must not have known. ha ha!!

    • mingo man

      You’re rite ernie? but santo DID keep saying the “‘new owner” I dont think mingo will start up guess I’m headin to th cokepalnt for 3 bux an hour less. I know what santo’s answer will be- ‘just be glad you got a job’

      • Tired of the ohio side whiners

        If you dont like the coke plant dont work there. We dont need people with your attitude!!!!

        • mingo man

          its called SENIORITY_ When I didn’t have it I respected and learned from those that had it. I have it now so you are gettin bumped – let me guess- you got a whole six years. I have more time laid off than that!!! How many union meetings have you been to. HOW many strikes have you been on? how much time on picket line. Again I never said I didnt like the coke plant, Its been 39 years since I been there. I will gladly go back.

          • whatever

            I have more than 6 years thanks!!!! Keep in mind if you “Bump” the very few young guys still working it will be YOU working the mandatory overtime every other day!! Im sure you would feel the same way if the coke plant closed and our crew came to take your jobs. All we can do is hope for the best and that they restart Mingo.

          • mingo man

            at the union meeting tuesday-a union rep said they are over scheduled- if someone r.o.’s they dont fill the turn- mandatory overtime ? i dont think so!! There are only 9 people over there older than me- again- when was the last time you went to a meeting? Those jobs arent YOURS- They belong Temporarily to the SENIOR employees! SOLIDARITY FOREVER!!!

          • whatever

            you say that you want to “work together” Listen to yourself!!!! AND….. the overtime may not be bad right now because production has been reduced, but ask your “source” what it was like 2 months ago and ask them what it will be like once in full production. I am a SENIOR employee and am not in danger of being “bumped”. Best of luck to you!!

          • mad mill man

            if you were a sr. employee you wouldn`t be calling us ohio side winers. the problem is we discovered your “best kept secret”. i have been there for almost 2 years now and it amazes me how it is run. the place is falling apart! preventive maint. does not exist! severstal got rid of alot of good maint. foreman that could have got this place back in shape!! also if you were a sr. employee you would know that when i started in the mill you could be forced over 7 days a week!! you punks can`t get forced 2 days in a row!!!

          • stand together

            I know what he is talking about and it has nothing to do with seniority….. Im sure there are plenty of you that would come over and that would do your job and be thankful to be there. There are a lot of guys that have come over and make it KNOWN that they do not want to be there. If you are pushing coke plant employees out the door how about not complaining every day that you come to work. We want nothing more than to see you back at your jobs so that we can get back to ours. Its been a tough couple of years and its time to stand together!!!! Not trash someone for stating if they didnt want to work at the coke plant dont work there. Mad mill man- I agree severstal has gotten rid of a lot of good maint. people. I dont think that people are punks because they only get forced every other day instead of 7 days of week. Give these guys a break. They are working to support their family too.

          • Osubucksfan01

            if the coke plant was shut down and the ohio side was running,you trained scabs with no years would have been crying the blues if younger guys were working.

          • Willow

            ill bet less than 12 anyway

          • mingo man

            Is that you- d.m.? ( best craneperson in mingo) :D If not thanx for the support

          • Willow

            great post mingo man

        • mad mill man

          most of the maint. at the coke plant now are senior employees from the ohio side. you must be a young punk production worker. trust me, if the ohio side don`t start up ,you will be looking for a new job!!!!! it`s called re alignment, and you won`t be there! i think wall mart is hiring!!

          • Willow

            about time

    • mingo man

      Yeah- I was at the union meeting- Our staff man Did keep saying “the new owner”.His answer to the 3 bucks an hour less will be “just be glad you got a job”

    • mill worker

      Great point ..how about the USW fax of the news we received it today when it was dated for “IMMEDIATE RELEASE 3 days ago” obviousely our union and international only give us information when they choose to not when they really had the facts

  • Anonymous

    To clarify wages expected under Renco Group/RG Steel — as I note in this post, base wages are expected to remain the same under Renco as the present wage scale under Severstal.

    However because Severstal never signed the new pattern contract with USW (despite two years of off-and-on negotiations), Sparrows workers are still employed under the expired 2008 contract. That makes wages at The Point about $3 an hour lower than the equivalent jobs at ArcelorMittal and U.S. Steel that signed the latest USW contract.

    • Baltimoe “No Clue” Brew

      Yes the current wage will stay the same during the transition period and we will work under the old contract , but Renco has agreed to the basic USW National pattern contract which sparrows point will get once it is ratified. Stop the rumours Mark.

      • Unionworker

        “No Clue” check YOUR facts!!!

        Sparrows Point workers will never regain the $3.00 per hour that they lost over the past three years. We will be given a one dollar an hour raise but we will not capture the $3.00 that they employees at Mittal or US Steel have been making!!!

        • Baltimore “NO CLUE” Brew

          First of all its not $3.00. its more like an avg. of 1.80 an hour that we could have been making . Second if you read my statement dummy I was not talking about what we could of and should of been making, I was stating that Mark’s comment was wrong stating we WILL be making 3.00 an hour less under RG then what other steel mills will be making.

          • Observer

            no clue where are you reading that the pattern will be met?

          • Unionworker

            Hey Dummy, why don’t youget you facts straight. Even if we get a wage increase, we can never regain the raises received by Mittal or Us Steel . Mark’s comments were correct we will always be $3.00 behind…….

        • bert

          You can’t loose something you never had. Lost implies you once had it…..!

      • Observer

        to no clue — here are you getting your information?

      • 38 yr vet

        I know the wage issue is very important with the sale. What about other issues such as restructuring ? We are hearing union reps are going to Pittsburgh as soon as next week to hammer out “local issues.” Some of us here in the Warren plant like this forum to hear other views and gain some info not always readily available. I know from viewing a copy of the USX contract gains were made in some insurance issues and S/A benefits. Pension multipliers were also increased, which would probably cause some members to retire. Rumors have been heard of some lump sum “buyouts” like we had in 2006 when Ira lost us in bankruptcy to the bondholders. It was 50 K and 1 yr of paid insurance benefits.

        • Tableclocks moe moe

          one yr of paid insurance is about 12.000….2 people paid by then for 10 yrs is about 75% of that times 10 yrs…about 90.000 as insurance goes up your looking at maybe 120.000 over 10 yrs….if 2 people live that long…

          • Guest

            So what is your plan,work until you die?

    • Kodabrown

      The statement is about wages staying the same DURING THE SALE, no mention of wages under RG. There was mention about a NEW contract, again nothing about future wages. You don’t normally get this type of reporting wrong.

      • Observer

        ok ,ok,ok,ok where is anyone getting the idea that they intend to meet the pattern agreements?

    • Traps 551

      Once again the Brew is wrong. Wages will be raised under the next new contract, which has yet to be voted on by the members. Union was earlier informed the structure would be $1 per hour year one, and 4% for every year after that. Renco DOES NOT have a signed contract. If you are going to report a story, get it right.

      • Unionsteelworker

        Type your comment here.
        Where’s the BEEF? Where’s the $2.00 per hour raises that we were supposed to get for the last two years? If you call it the pattern then why aren’t we making the same money as those at mittal and US Steel? Sounds likew a concessionary contrcat to me.a

  • OFF FOR TWO YEARS

    Warning- why start up s.p. at a cost of 400 million when he can start mingo for 80 to 90 million?
    here comes our final bankruptcy!!!

  • Rmoe15

    alright glad tihs part is done . happy days are here again.how my i guess i better get all my personal info together .so i can fill out all that again.i dont need to practice the urain test im pretty good at that. at my age had part is tryin to remember the personal info .this new owner seems to be well writen about looking forward to some good years.wonder what our union gona do .be happy to get raise after 10 years. hope its not taken out of my encentive again.and maybe set. and maybe a set bylaws that wont change week to week day to day. selling the place seems to be the easy part to me . the strees is what a group taken 30.00 plus dollars in dues out of my pay is gona do . I DONT KNOW. >

  • clean air

    Sparrows Point is an environmental disaster that WILL happen. Then our government will finally shut that piece of sh*t down!

    • 123

      LEAVE THE AREA, the plant has been here for over a century.

    • Ironoreman

      yeah shut sparrows down and ship those jobs to china where they REALLY pollute! Dumbass better here under stringent control than over there under no control. You really are clueless.

  • Unionworker

    THANKS Mark for reporting the lastest news. Being laidoff you are the only source that tells us anything. We really appreciate you communicating with us!!!

  • bert

    I understand the unions restlessness about not being up to the industry’s standard wage wise, but you have to understand renco’s position of wanting a 15% return on their investment. It may take some time but I feel you all will get your fair share of the prize. Lets try to make this a profitable operation first and foremost and you can continue to negotiate for an increase of pay at the same time. So it hurts a little for the first year, try to look at the long run. Everyone involved in this business will be able to live comfortably if their working. hopefully renco will invest in some upgrades in the process that will make us even more competitive on the global steel market.

  • bert

    In response to your outburst of disapproval of the events that have transpired about the steelworkers going back to work, making a decent living at that “piece of sh*t” as you called it. I think I can say from all of us that directly or indirectly earn a living due to it’s being a productive steel mill again…….. eat SH*T.

  • bert

    RESPONCE WAS DIRECTED AT ……CLEAN AIR.

  • Ironoreman

    Well I hear they are going to sale S.P. to the Ternium group anyway so don’t change your hard hat yet.

    • bert

      Well……Ternium has unlimited access to raw materials, which drives the cost per ton, and a straight shot to ship them here, It’s a win win situation for them. and for sparrows too for that matter. L runs great on quality raw materials. And I think sparrows would fair better as a stand alone operation with the right people at the helm.

      • Guest

        Bert sorry thats to logical reason for the International.Youn know their reasoning……if it makes sense do the opposite.

  • 116285248

    The details of what we did not get in the last pattern contract were not shared with me, but I believe the following is an approximation of what we would have gotten on average: A dollar an hour the first year; another dollar the second year; and a dollar in the third year (which we are about half-way through). You are guaranteed a forty hour work week, under normal conditions, and that amounts to 2,080 hours of work each year. That equates to approximately $2,100 the first year, $4,150 and $3,100 for the first half of this contract year, for a total of $9,350. Now, if you factor in an average 20 percent overtime rate you can add an additional $2,800 for the same two-and-a-half year period and you get a running total of $12,150; Let’s round down and make it an even $12k. Add in the $6,000 signing bonus the pattern contract allowed for which many feel we should have received for a total of $18k. That means on the average 6,000 people at all three plants are owed about $18,000 for a total sum of $108 million.

    The following has been reported this afternoon in the Business section of The Wall Street Journal:
    ‘Renco has agreed to pay Severstal $125 million in cash and a $100 million secured note. It has also agreed to pay off $317 million of third-party debt and assume $650 million in employee-related and environmental liabilities.’

    My Opinion: 108 million is roughly 16.6 percent of the above mentioned $650 million. I see no obvious reason why active workers would not be getting about 17 percent of that $650 million; I certainly HOPE so, but only time will tell.

  • steelman

    Sources tell me that we will get a $2 per hour raise then we will get $1500 a year for, four years totaling $6000, that means we will be 7 years behind instead of 3. If this turns out to be true I hope all of us vote this bullshit contract down and show the union that we will not stand for there “backdoor” deals. Unions are getting a bad RAP here latley, if you have been watching the news, and it is not because of the rank and file, but because of the horseshit like this that is going on. It is giving us all a bad name. I ask everyone to vote agaist this bullshit “dave mcall” deal.

    • Workersunite

      cirri wont vote aginst it he owe mccall to much for protecting he dead a–. wonder why he wife still working and they lowered the career deveopment benfit. they could to bankrupt he wife still be vsitting there doing nuthing

    • Charliebrown

      The thousand or so of laid off people will be glad to get back to work even at the old scale, but they will get something. yes it would be nice to be made whole but most would be glad to be back at a good paying job!!! If your not happy maybe the BREW will hire you, they talk the talk?

      • Not Glad At All

        Charlie Brown works for Peanuts. That doesn’t mean I like to do the same.
        It’s great to hear how YOU think people who are laid off will be glad to work again, even for the old scale. I guess you have spoken to all of us, but somehow you must have missed me. I’m one payment away from losing my home and you speak for me – maybe you can speak for me the next time a creditor calls. Besides, what are you even talking about? Aren’t we going to get made whole? Are you a union cheer leader getting me ready for the big one? Look I’m glad the plants are sold, but I’m not happy about any of what has happened to me the last three years Charlie.

      • Not Glad At All

        Charlie Brown works for Peanuts. That doesn’t mean I like to do the same.
        It’s great to hear how YOU think people who are laid off will be glad to work again, even for the old scale. I guess you have spoken to all of us, but somehow you must have missed me. I’m one payment away from losing my home and you speak for me – maybe you can speak for me the next time a creditor calls. Besides, what are you even talking about? Aren’t we going to get made whole? Are you a union cheer leader getting me ready for the big one? Look I’m glad the plants are sold, but I’m not happy about any of what has happened to me the last three years Charlie.

    • sptandem

      I couldn’t agree with you more. I hope the membership quits letting these so called union leaders think for them and decide to think for themselves for a change and vote to make us whole.

  • Man of Steel

    Watching union people tear each other apart is my new favorite spectator sport! Thanks Baltimore Brew!

  • To Better Times

    Anybody hear who Renco – Rennart and Goodwin are going to bring in to run the plant here at the Point? Replacing the incompentent management, starting with the GM Howard, will be a test of how committed Renco is to seeing the Point survive and thrive?

    • Guest

      Word has it Howard is either building or just built a new home near Baltimore!

      • To Better Times

        Yes, but hopefully Goodwin (who has a pretty good reputation as knowing steel operations) will realize that Howard just is not up to the job of running a plant. Howard is not strong operating guy, but he sure knows how to take advantage of his position in the plant.

        • 38 yr vet

          Dave Howard was a WCI(Ira Rennert) guy in Warren. I think he was some sort of vice president(as we had many). I remember we had meetings during our 3 year bankruptcy period on the state of the company and Dave always handled the charts and grafts that showed how we we losing money on raw material costs, man hrs. per ton , etc. Don’t be surprised if an Ed Caine doesn’t surface to run one of the plants.

  • tired of it

    You cannot tell me these people making this BIG DEAL have not made a plan yet.
    Surely they are not as inept as Severstal, or are they?
    Wish we could come to work finally and someone had a solid plan.
    The fat lady has yet to sing.

  • Traps551

    I DID NOT mention pattern. I said what the new contract will look like if approved. If you don’t want it, vote it down. You have that right. If you think RG Steel is going to pay you back money to make up for the 3 years you worked on a contract extension you are not going to pass your piss test. This will get us closer, but still won’t be at pattern. Like I said, vote it down. Yeah, right. Ballots sent home, MAMA vote. Will pass 2 to 1 or better.

  • Ohiostatebuckeyes123

    I wish the best for all the plants and I haven’t been happy about the way we have been informed by the union and international.,but I don’t know what they were allowed to say or not say.I know that people that have senority should be able to work and break in on jobs that can be learned in a timely fashion.The senior workers are not wanting to knock younger workers out but this has been a long haul and hope there is some light at the end of the tunnel for everyone.Please stick together.

    • Kangeli

      Lets get the record straight! Severstal PICKED the bones of these three companies. That Russian new in the spring of 2010 that he was going to sell these three companies.
      What was his stratagy? Well its simple. He transfered all viable orders to Dearborn and that non union mill in columbus Miss. When these co. finally were able to meet specs. of these orders he then decided to sell.(not until) He took the order book. He also depleted Wheeling & SP of nearly all raw materials. What a ruthless bussinessman. but, remember our union new his intension and gave him time to perform his magic. They also courted in here to buy these three co. How can anyone respect their ability to research these co. before they agree for a sale? The bottom line now is, these co. will limp along as long as the demand for steel is there. However, as soon as the economy dips a little, it will be same old same old. Where as most co. will survive the little dips and roll through it……..

      • Ohiostatebuckeyes123

        We can’t control who the international picks , and I know they have made very poor decisions . I clearly think they would have been better off selling each plant to separate owerners unless someone was going to get left out. Sparrows could have been sold to argentine outfit and money and resources would have been available to run it . Renco only wanted warren and he would have been able to buy it and spend the money to make warren modern again,instead of spending money on three plants and not being able to put money into each.Wheeling would have been bougt by Us steel because they don’t have a great hot mill and would use Mingo plant to roll and would have beeen able to put money into the plant to modernize it. To me that would have made more sense for everyone , instead we have to hope that Renco is able to run these three plants and still have money to modernize them all.Not going to happen. Mingo plant is going to get left out again and people are going to lose there benefits .I hope I’m wrong and they are able to run us all but I can’t see that happening with the economy.

  • Tableclocks moe moe

    i dont know,,,,,still a lot going on….i got my people looking into it with their people….donations need to get the L started….ooo…ok…they got out 2 buks a hr to spend….maybe 3….i forgot about that….maybe dave will pitch in some of the internation money….lol….we still got a long way to go boys and girls….dont spend so dann much….put some in your 401….we,ll be ok….just live on what you make….not on what your friends or neigbours make….see yall at work my friends…

  • tired

    check out wtrf.com they have released details of the contract.

  • tired

    check out wtrf.com they have released details of the contract.

  • Guest

    Good luck to all my union brothers and sisters,whether you have 4yrs or 40.The uncertainty of whether we would be sold and to whom is over.Now is the time to wait and find out the details of the sale and what it means to each and everyone of us.Lets wait and find out the details of the contract before we start tearing it apart without knowing whats in it.It does no good to try and tear each other apart when unity is needed most.

  • Tableclocks moe moe

    young peopl ….you better learn how tro save some money….live on 75% or your base pay….if you want to retire at 62 or so….social security and a pension is will do about 60 t0 80% of your needs….you,ll need some saveing to tap into….

    • Ohio Valley Girl

      Moe thats the smartest thing you’ve said so far.

      • bert

        don’t feed the animals

  • Listen up!

    People, STOP the madness! This is the dummest thing I have ever seen.
    Bickering, punching, scratching……..Good God Man!
    If it makes you feel better than do it. But really???
    I am not the smartest knife in the drawer and Yes, 850+ people got laid off which is sad due to inept Russians.
    Lost numerous people with skills and numerous other issues.
    BUT we are still here………showing these piece of crap Russians we are like Tigger and we have springy tails and bounce back. WE WON !!!!!!!!!!!!!!!!!
    Now SHUT UP :) and get back to work.
    That is IF the contract is to our liking.

  • Kangeli

    Only an idiot would vote for a contract with no guarantee he is going to operate your plant.

    • concerned steelhead

      Amen brother! I shurely won’t vote for the contract if they don’t run our Ohio Valley mills.It’s been long enough finally have to take a stand!!!!!!

    • bert

      There’s not an employer on this planet that’s going to guarantee they will operate. You must be from where? The new owners are willing to give you a contract. Only an idiot would turn a contract down at this point in time. Or you are completely insane! Think about what you’re saying, there’s obviously nothing that would satisfy your needs. the contract offered as I understand is, at the very least, good enough to put people back to work. Iron out your DEMANDS at a later date. get people back to work for their families future and keep them from loosing anything more.

      • tired

        Of course you would say we are stupid. They plan to run your plant. If they didn’t have plans to run your plant you would be complaining too. We are going on 2 years laid off…. enough is enough!!!!!!!

        • bert

          Yes, I probably would complain, but I’m intelligent enough not to turn down a contract that puts people back to work. You act as though your plant better start back up so you can go back to work or else! I truly hope your plant does start up, but I don’t understand your way of thinking. But to vote no on a contract unless there’s a guarantee they start your plant up, is the most ridiculous thing I’ve ever heard.

          • tired

            Again…… it would not be ridiculous if you were in our position. I have been reading comments on the brew since they shut you down. You complain and its only been 8 months. Try 2 years. Sorry I’m not jumping up and down for you since you will be going back. I have to worry about losing my house and feeding my family.

          • bert

            Tired, I truely hope that you don’t loose your house. And I would like to think that you have been working somewhere else or looking into another career having been off for so long. good luck to you and your family

      • Kangeli

        Well said Stand Together!

        • bert

          So, under your juvenile way of thinking, If you don’t get to go back to work, nobody should go to work? The greater good means nothing to you? You would begrudge anyone who goes back to work, if you can’t ? Do you understand how that makes you look in the eyes of intelligent steelworkers that make calculated and informed decisions concerning whether people work or not?………. Grow up!

          • Pit

            You must be one of the selfish ones thats getting back to work. You need to think about other people besides yourself. Bet you’ve never done that!

          • bert

            How can you call me selfish ? I’ not the one that wants to hold your union brothers and sisters hostage until you get a guarantee the owner puts you to work. WTF

          • bert

            Your thinking like that actually defines selfishness……….

    • Ohiostatebuckeyes123

      If you have the employees at Sparrows going back to work and the people from Warren already working you know they are going to vote for the contract , it’s not going to matter what the Steubenville and Mingo people are going to vote because it will pass anyways.I hope I’m wrong but I bet the Mingo plant doesn’t run right away and everyone is almost out of benefits.I will vote no if they aren’t planning on running the Wheeling plants.

  • sptandem

    Well lets look at some of the facts. Ira made Sparrows Point the new company headquarters. He once owned Warren and wanted to get them back. So I figure he really paid the 1.2B for those 2 plants and the russians threw Wheeling Pitt in for free. All the analyst are predicting that he will light off “L” furnace because that would give him the greater amount of quality steel. Initally, they are reporting that Sparrows Point will be getting coke from Mingo Junction until he build a new one on Sparrows Point. I can see where they are coming from. Sparrows Point made money under ISG, they made money under Mittal. Warren made money after they came out of bankruptcy. When was the last time that Wheeling Pitt made money. Certainly not under the Esmark. Ira is a businessman not a steelman. I see him moving customers and building Sparrows Point and Warren books and selling Wheeling Pitt assets to create capital for improvements to his new RG Steel Headquarters and Warren.

  • Kangeli

    WHY MINGO JCT. MAY NEVER OPERATE AGAIN(EXCEPT FOR BOOMTIME)!!!!!!!!!!!!!

    Ok! Here it is. We only have a Arc fce. with appx. 1.3 met. tons capacity feeding a two stran caster with 2.6 met. tons capacity feeding a hotmill with 3.4metric tons capacity. Our hot metal capacity can only operate our caster at half capacity. You can’t operate effeciently like that… As for #5 BF which was relined(under Esmark) But stoves were not rebricked). Can produce appx. 4000 tons/day, but can’t sent that metal to EAF because Eaf can only take about 1800tons/day. What do you do with other 2200 tons/day. EPA won’t allow you to dump it, therefore you need a Pig Machine to make pig Iron and sell the excess. We do not have a Pig Machine. (so thats out) Putting that option aside, why can’t we put the 2200tons/day in our Bof A vessel that was relined(under Esmark)? Well, Our permit expired in 2010 for Bof emmissions. We need 35 million(each vessel) in a secondary emission system at our bof to operate. Therefore, without either initial investmet in either a pig machine or emission system at our Bof that leaves the Mingo Jct. plant with very small hot metal capacity to feed our caster and hot mill. Very high cost!!! That being fact, until we see plans of a pigmachine or a secondary emission system then we might expect to be nothing more(at best) than an overflow mill during economic boom times only. Trying to operate as a Maximill in a minimill market don’t work. We simply don’t have the capacity to “burry our sins with tonage.”

    • Realist

      Kangeli I am so glad that you pointed out these facts. Blast Furnace Man should read this as well. I know that they want the Wheeling furnace started, but I just don’t see it. Believe it or not L furnace has very modern technology . With the right material you just don’t get a better operation and this is a fact. I know for a fact that the EPA has no love for either of the plants, but the mingo furnace was under very tight restrictions. And again has lost alot of talent to boot. Sparrows point has lost some, but they have not lost the key people that are needed to make it work. Sparrows also has a Pig machine, they don’t own it, but it is available and they have two good BOF vessels with new emmisions systems on them . Mittal spent over 40 million improving them due to the state EPA coming down on them.

      • WaitingtoStartUp

        Realist I would listen to Blast Furnace Man because it sounds like he knows what he’s talking about when it comes to #5 Blast Furnace. Looking at some information I am in possession of it says that Wheeling Pitt #5 Blast Furnace is ranked third in efficiency for its size in North America before it was relined. I don’t want to bash anyone’s equipment but if you are in the know about Blast Furnaces I’m sure you have the same information. Please check it out.

        • Guest

          All of this is throwing sand in the wind.You can state so called facts and insider info but at the end of the day there is only one opinion that counts and thats not yours or mine.It s not fun listening to all this bs about who’s plant is better than someone elses.So heres hoping that all our plants get back to running in some form or another.And heres a little insider information that anyone who went across the Key Bridge yesterday could see with their own eyes.What was in that big black ship tied up at the dock at Sparrows Point………..

    • mingoman

      Rennart spent 66 million for two homes for his twoo daughters-maybe he’ll spend that much for the BOF permits ?

    • mingoman

      Rennart spent 66 million for two homes for his twoo daughters-maybe he’ll spend that much for the BOF permits ?

      • Guest

        Good luck with that…..have you seen his wife….he better take care of her babies…..lol. All kidding aside I think he will do whatever makes the most sense. So heres hoping that we all will get what we want.

      • Kangeli

        I would love to see it. Mingo is a “right sized” steel mill that could be very viable. We need some relatively small capital investments. Either a pig machine or appx. 30 million in “A” Vessel baghouse. I would like to think that with an improving economy that will take place.

  • Senior Steel Man

    Two last words for the Russians.
    PHUQUE EWE

    • mad mill man

      the russians phuQed us pretty good, and our international let them do it . they should all go to prison for misrepresenting us. i just hope we can recover from how far they set us back!!

  • mingoman

    Well its friday and still no details! Whats the big secret- is it all bad news? S.O.S. !!!

  • bert

    Iron ore should be readily available since Japan will probably loose 5 steel mills due to the tsunami that hit there today. Experts say it may be 5-6 months until they become operational again.

  • Terradolphins

    good luck to all you that are left, I just don’t trust are union or renco. the workers are always getting sold out……I have found a good job and I am not looking back..goodbye sparrows point it was a good 15 years…………..

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  • March 24, 2014

    • Last Thursday, I sent an email to the Mayor’s Office of Communications asking for some basic responsiveness: Please return our emailed queries and phone calls about stories. Please send us the same routine emails you send to other members of the media. Lately, more so than usual, they haven’t been. It’s a shame because, even [...]

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