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Some good news: Sparrows Point will restart an operation next month

Amid an otherwise dismal week in which steelworkers learned that the sprawling tinplate mill will be idled, RG Steel announced last night that it will reopen an operation at Sparrows Point that makes rust-resistant steel for the building trades.

The company is counting on a rebirth of sales of Galvalume, one of the most successful products ever produced by Sparrows Point, to make its sheet-coating facilities profitable.

Specifically, the company will reopen next month the No. 2 galvanizing line that was shut by Severstal, the previous owner, two years ago. The opening will allow Sparrows Point to use the more modern No. 4 line to run primarily Galvalume.

Well-placed sources told The Brew that the company’s present plan is to run 15 turns a week at the No. 2 line, resulting in about 40 jobs.

While a far cry from the number of jobs that will be lost with the closing of the tinplate mill, the expanded line will mark Sparrows Point’s return to supplying customers with a broad range of galvanized products.

Huge Commercial Success

Galvalume is an aluminum-zinc, alloy-coated sheet developed by Bethlehem Steel and first produced at Sparrows Point in 1972. The product became a huge commercial success because of its superior corrosion resistance.

Used for roofing, windows and doors, the material can be roll-formed into a variety of panels and stamped into shingle facsimiles as well as painted for extra durability.

Bethlehem Steel licensed the product and sold its patents and technology to steel companies around the world.

The deep recession of the building trades led Severstal to close the No. 2 line in July 2010, limiting production to the No. 4 line.

Using the cash recently supplied by Cerberus Capital Management, RG Steel decided to reopen the No. 2 line.

Because the line was not placed in “asset protection mode,” RG Steel has been forced to spend more than $2 million to repair the motors and overhead cranes to make the facility serviceable, well-informed sources told The Brew.

 

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  • George

    And MORE GOOD NEWS – we just docked ANOTHER large bulk carrier at the Sparrows Point ore pier!  The beautiful bulk carrier DOUBLE PARADISE just docked.  Two large bulk carriers unloading more materials for the Sparrows Point mill proves once again that Sparrows Point’s future is safe and secure. Mr. Ira orders out for bulk carriers as easily as I order out for a Pizza at Papa John’s!!!

    I told the bosses to open the Galvalume line again, as it is a cash cow for the company. We are world famous for this durable product.  The building industry must be delighted too to have this product available from its original source.

    It should take no time and very little outlay to be up and running again. Maybe Cerberus will give us additional capital to add several more Galvalume lines to make-up for the fading demand in tinplate.  We are doing just as Dr. Boothe advised us to do – run our specialty finishing lines, now we need to add more lines to corner the market and create more jobs and I like that!!

    Georgie

    • Wci8757

      you also said tin plate was a cash cow to.

  • Friend of Steel

    As I mentioned before, this is really good news for SP. Much galvalume will be needed to repair all the storm damage done this weekend.

  • Dr Raymond Boothe

    Again (As Georgie and his RG/SP buddies dis-represents) Galvalume is an out of date product that is not going to save SP. No matter how much ore rolls into SP, you have to have something to sell, And since SP has a terrible reputation for quality, and losing customers and operating at such low levels I would not put all of Cerberus Capital Management’s money into one basket. RG Steel can’t even use its own substrate steel for use in own tin  plants in the Ohio Valley. SP does not have the quality to sell its OWN TIN PRODUCTS. 

    How in the world do you expect to sell an old product like Galvalume when RG Steel produces better coated products at other locations. Again, as I stated earlier, this is no doubt an effort by RG Steel’s management to cover a losing unit (tin production) with another  losing unit (Galvalume). With the possibly of losing 300 employees at RG’s tin mill, they have to do something to show Cerberus and the Maryland Government that they can maintain employees without being on the breadline. However, with their reputation, SP’s will still be on the breadline.

    Time is running out for SP. Only Warren and Mingo are capable of making money. Spending over $2 million dollars just to keep this unit serviceable is just another example of RG Steel’s stupid decisions on keeping SP semi-operable at any cost.

    In fact there is no LOGIC in putting cash into a money losing operation like SP-when puting money in all three plants would make the entire company profitable. There has to be a problem at Cerberus when they cannot recognize how and why their investments are bleeding their investors to death.

    The leadership at RG Steel is not fooling anybody in the steel industry. Not starting up Mingo is only the beginning. Starting up Mingo and Warren as a single unit would be a
    no brainer. The leadership in Baltimore consists of no-brainers combined with a strong
    Maryland politico. By April, we shall see how many millions have been blown away by investing in one plant-SP.

    • Wci8757

      i think your beating a dead horse with george. if a tornado blew sparrows away he would come on and say it was just a hundred year old outhouse nobody was using that blew over, nothing else.

      • George

        Dear Dr. Wci8757, please do not stand too close to the Beast, she is known to jump up without notice and kick her hind legs at the competition!  She also has a reputation for dropping Golden-Eggs out of the sky and knocking the steel analysts out of their creepy Wall Street and London cubicles.  

        Do not worry, I will send your Dr. Dearest an umbrella and my old steel-tipped shoes (Redwing, the boss paid for them) to protect him – what would the steel industry do without our very own Dr. Don Rickels to insult us? Why take a bus to the Catskills this summer to hear our favorite stand-up comedians when we have our own Dr. Chuckles doing one-liners about SP, Mingo & Warren?Dr. Wci – come on over to SP and I will find you a nice job, Spring is just around the corner and the Chesapeake Bay Bluecrabs and  tasty Rockfish will soon be under the Ore Pier, I will need an assistant to help me pull in the catch of the day.  I just saw a vacancy sign at the local trailer park and I will reserve a pad for your trailer. Pets are welcome and I like that!PS:   Dr. Wci, Bring your own Sunscreen, Dr. Walter is using all of ours to lube up the Galvalume line and I like that!Dr. Georgie

        • Wci8757

          i guess in december she really kicked up her hind legs at the competiton and laid another golden egg. it was so big that you were on the street corner begging for nickles to feed her. now you might live in a trailer park but i don’t have to. don’t worry about having to find me a job as i have a good one. talking about comedians you and walter are doing a fine job of being one yourself.

    • REALSTEELWORKER

      Good Dr You are so right here ANYTHING the point sends to Yorkville is REJECTED!! With Warren HOTBAND we are good. As you stated eather YORKVILLE has been running TINPLATE for the past 100 YEARS.

    • George

      Hi Doctor Boothe – Please read the funny papers – Galvalume is a “HUGH Commercial Success”. How can a modern building product – compared to plain old-fashioned galvanized corrugated sheeting, which is still used world wide be considered – outdated? 

      Boys -it looks like the real PLANT here is the good Doctor, or should I say the  sinister ”Minister of Propaganda” who must be working for someone who wants to buy our valuable mills at bargain basement prices?

      After the dear Propaganda Minister gets done running off all of the loyal customers by trashing SP, and sowing discontent and doubt in Ohio & WV about key management, union, and highly dedicated and motivated workforce, the company looses value, as well as customers and key personnel.  The dear Doctor should think twice about how he is upsetting the apple-kart, unless he is really trying to lower the value the company so that the people he represents can take the mills over for a few cents on the dollar or simply want the mills closed so that they can sell their cheap vinyl-clad or powder-coated products instead of fine products like Galvalume!

      So who does the dear Doctor of Doom work for?  Like Alfred Hitchcock – one moment he builds us up —  only to let us fall off of the edge into the abyss of obsolescence.   

      Too bad that everyone can see through his obvious wicked deceptions – it is not going to work Dear Doc., so go find another industry to try to hack into, we are too smart for you and I like that.

      Georgie 

      • Wci8757

        george. it’s good to know that your the propaganda minister up there.

      • Dr Raymond Boothe

        If Galvalume was such a commercial success, your coating plant would have never been shut down in the first place. The only person who is spreading propaganda is you because all you are trying to do is to convenice workers at SP that you actually have somthing to sell. It is an old outdated product that has been replaced long ago.

        As usual you don’t have a clue about RG Steel and its dying financial status. Even if Galvalume was sellable, the current economy is not interested in purchasing it. There is still not a big move in this country to replace infrastructure. You are the one reading the funny papers because Galvalume will not be the savior of SP or RG Steel in general. These are pipe dreams created by RG Steel and yourself (alias RG Steel). Your apple cart has been upset for a long time and all you have left is rotten apples. Old equipment, old products and customers that have no faith in your poor managed operations.

        I would like Georgie (and his RG buddies) to get back to reality and answer all the questions that has been presented to them. It seems that they are afraid to meet the facts of the situation and wonder why so many RG Steel employees in Ohio and West Virginia are down on SP.  Educated employees just can’t figure how a plant with a solid losing record is given $100 million dollars in financial gifts (along with free coke and scrap) and is allowed to let its investors go down the tube. This is really the joke of steel industrial history. Nobody really cares about Georgie’s and RG Steel’s quotations when they are placed against the facts. The reality is that RG Steel/SP is an overbuilt plant with a bad reputation, bad customer service, poor quality and by April was not be “cost effective.” 

        Now with all of this poor trackwork, how does anyone in their right mind believe that RG Steel will survive with its current management. Maybe people like Georgie and his supporters on the east coast can go spend the rest of their retirement fishing for crabs beside a cold L blast furnace. The only deception is to the employees of RG Steel who believe that their management will save the company.

        Georgie and RG Steel-We don’t believe a word you say. Be quiet unless you are capable of providing some concrete answers. The old “economy” claim just does not work anymore.

        • wciheycraneman

          Once again, let me remind our brothers and sisters we were told if the Point doesn’t make it we are all done.  Well the hand writing is on the wall.  Just watch what management does.  All they do is scramble.  Tin mills’ down, oh lets start the galva lume line.  At Warren they are telling us they want us to ramp up the hot mill to record proportions, maybe 20 turns!  Gotta get it out!  This with a blast furnace that should have been rebuilt at least 1 1/2 yrs ago.  We are told the Point must be breaking even by April or we are back in the same shape as December.  I don’t think loosing the tin mill business and starting a galv line is going to do the trick.  And I surely see no money coming Warrens way for a Blast Furnace rebuild.  Let’s face it, R G Management is milking every last penny it can out of Warren then its adios. 

  • Richard Cheese

    “The deep recession of the building trades led Severstal to close the No. 2 line in July 2010, limiting production to the No. 4 line.”

    This thing hasn’t run in a year and a half. It had to go through one full cold winter (this winter doesnt count). I havent been there for a while but from what I heard, the company wasnt buying many parts to fix the mills that were running. I just wonder how many parts got raped from this line in the process.

  • Richard Cheese

    “Well-placed sources told The Brew that the company’s present plan is to run 15 turns a week at the No. 2 line, resulting in about 40 jobs.”

    GOOD JOB USWA!!!
    You saved 40 jobs. I am happy.
    Wait a minute… CRAP.
    You mean you lost another 260? Damn, Damn, Damn.
    You cant win can you???
    Or… I guess the real question is… Are you even trying to win???

    I cry as I am now let down by the USWA’s efforts. And to think I was thinking about buying the new local’s president a walmart gift card for his efforts. Do they sell $2.00 gift cards? Thats all he’s worth.

    • Jason

      Our union President wasn’t even elected to that position. These crooks we have running our union have to go. They haven’t seen the inside of a steel mill since the last election.  They could care less if we are laid off since they will be in their cushy jobs ignoring phone calls as usual. 

  • Dr Raymond Boothe

    It was recently announced that Olympic Mill Service (IMS) is sueing Severstal NA for closing the Mingo Plant. It is not for certain how this will effect the status of Mingo since it was purchased by RG Steel. However it is for certain that this lawsuit will become a part of the many miscalulations created by the leadership of RG Steel. 

    With all the problems at the Baltimore facility, maybe Olympic is counting on getting a settlement with Severstal NA, which is in a more favorable financial position than RG Steel.

  • Jay

    Yes, it would be great if RG Steel would restart the Mingo plant. It seems that many people forget about the almost thousand workers that have been laid off for three years. This plant does a great job with its product and should be consider to restart in the near future!

  • Warpig

    Question….what plant did Ira own before ?

    • appalledinohio

       Warren….for almost 19 yrs. 

  • George

    More great news for SP – can you believe that ANOTHER bulk carrier just pulled into SP, the big Yarrawaonga is the third bulk carrier this week and I like that!  

    Dr. Georgie

    • Wci8757

      george. i will be in baltimore in about two hours. i want to take a look at them ore carriers. im comming down to finaly to get a birds eye viev.

      • REALSTEELWORKER

        You don’t have to waste the gas . You can get a birds eye view  on MSN Live there are NO ORE CARRIERS IN THE PORT!! Georgie is very old and is seeing things.

        • Nashorn

          REALSTEELWORKER – Aerial photos on MSN Live, Google Earth etc. are NOT REAL TIME and cannot be used to see what’s happening in a particular location at a particular time. The current photo of Sparrows Point as shown on MSN/Bing Birdseye was taken by Pictometry/Bird’s Eye in 2010.

          Ship locator services, here on the web (marinetraffic.com), are better ways to go to see what’s where.

    • Wci8757

      why are you pulling my leg again. there are no ore carriers in port. you old leg puller.

  • warrensteelman

    if you are layed off you cannot vote, understand, and as far as going to union meetings why? when all you here is the same ol shit, these lapdogs care about themselves only. you say the past leadership left alot to be desired? get off your ass? demand it? there is no uswa union. get used to it,its your contract, after all you voted for it.

    • Outside Looking In

      @Warrensteelman my reply was directed at Jason whom i assumed was talking about Cirri and his gang.But i still stand by it.If you dont stand up and ask questions and get involved you’ll wake up one day on the outside looking in.I was guilty of this until Severstal put the boot to our necks and we couldnt get a straight answer from Cirri.

      • Wci8757

        when you do stand up and ask  they still blow you off.

  • Dr Raymond Boothe

    There is NO logic for a Warren hot end rebuild (I am sad to say). They will pour money into a failing SP plant that loses money,  but not in a plant that generates money. The most logical approach to to restart Mingo and let it supply the tin business and Warren’s specially steel business with slabs and coils. This act in itself will save the company significant money and give SP a chance to possibly break even by April. This change needs to be made made now in order to save the company. In addition, it will help the entire company and help avoid layoffs at SP. RG Management is not allowing the entire company to be productive  and is not exploring all of its capabilities.Really I have never seen a management that actually works to LOSE money. This management seems to enjoy watching a company to go down like a slow sinking ship. You would think with all the people who have suggested these changes, RG Steel, SP and RG manufacturing would get a clue.

    • No.5

      Doc u just may see your plan put into place sounds like the romors floating around the o… valley right now

    • observer

      I usually agree with you but….. To restart Mingo will take at LEAST 60 days so how could SP break even by April???  

  • Mtngirl

    Ira is a smart bussiness man . He has a plan, don’t know what it is but he wouldn’t dump his own money into SP if he didn’t think it was going to make it. I have heard he doesn’t worry about Warren because it takes care of itself. I have heard a couple different rumors, 1. he wants the port at SP, 2. He wants to get Sp making money so he can get rid of it. Who Knows?

  • Wci8757

    it had to be a package deal. now that he’s got sparrows he has to make it work. or try to.

  • Wci8757

    there is a web site that you can go to that shows you what ships are where and the color of the ship shows what it’s cargo is. old george got caught red handed on the last one.

    • Dr Raymond Boothe

      They figure people in the Ohio Valley cannot operate computers. Actually we have advanced submarines in the deep water port of Baltimore just waiting to sink every ore ship that arrives there.

      Its the only way that RG Steel can save money.

      • Walter

        Doc., did you know that German subs came up the Bay during WW II to spy on shipping movements and SP, read the book by the German sub commander – “The Iron Coffin”, you will not put it down and then will build a little sub model like I did.

        The only difference between the nasty Nazi sub commander and you is that the sub commander had more compassion than you, I guess this is why you are known around 21219 as Herr Doktor, the  Minister of Propaganda? 

         You are high powered expert on the steel industry but everyone can see through your negative reports about the Point – why so many detailed reports with little fact laced with so much doubt?   Because SP has so much value and your handlers want a piece of its Golden Pie?  Have they retained you to break the Point’s will so that they can pick up the pieces for themselves?  The more negative knucklehead comments from you, the more others see that all your energy and efforts mean that the Point has great value and somehow you want something, I am not sure what, but we are not going to cut and run because of your negative reports, nor will the customers and vendors, everyone is staying put at the Point!  

        George is ordering everyone overstuffed Lazyboy Recliners, just like his at the end of the Ore Pier, to prove that we have made the Point our permanent home!  I asked him for a Purple chair (with cup holders), so that it will match the Raven colors of the curtains and Raven decorations in my office. At World Headquarters, thanks to the good taste of the old greedy Beth Steel big shots, we have nice big offices, but I did catch heck from the big boss for painting the burled-walnut raised wooden paneling in my office Purple!  I told him it was only water-based paint from Hechingers and he backed-off.

        Walter Phd. BS  MD 0f 21219

  • 1190memberforjustice

    if you would read about iras past you would know that he does not i repeat does not dump his own money in nothing. if he did he wouldnt have took 100 million from cerberus capital, ira has always used OTHER PEOPLES MONEY, ALWAYS HAS AND ALWAYS WILL.

    • Walter

      My Mr. Ira is a wise businessman, Donald Trump uses others folks money and like Mr. Ira – EVERYBODY makes money from the Art of their Deals!!!

      As much as Dr. Doom wants to sink Sparrows Point it is not going to happen!  Somebody in the industry either wants their hands on the Beast and our deep water seaport and rail lines, or they want us closed to stop the flow of iron from the massive iron making capacity of “L” Furnace?

      Read between the lines boys – the Dr. posted that SP is not receiving one bulk carrier after another, saying that George was seeing things, now we have Independent reports from the shipping agents confirming that George (and everyone else that drives past the ore pier already knows) the Port of SP is receiving a steady convoy of ocean bulk carriers.  

      So much raw material, and none of it is loaded on trains and shipped out, all of it is for L Furnace.  The ore piles are being consumed in the Beast’s Belly and more Ore ships arrive every few days- just check the international shipping reports or listen to Captain George, he has a Lazyboy Recliner at the end of the ore pier and never misses a ship or free drink or lunch offered from the ship’s crew.  

      Dr. Doom & Gloom cannot explain away why L is making so much iron, he was caught again with some of SP’s Golden Eggs on his face!  Wci8757, do you have a hanky for him?

      It is not Dr. Doom’s place to question SP’s owner or the good folks at Cerberus, they know what they are doing, these are the smartest businessmen in the world, if they were not going to make a lot of money with SP they would have gone with other ventures and let us die.  So we should all give them a big THANK YOU for saving the heart of SP – the BEAST of the EAST!!!!!

      Walter Phd. BS    MD-21219

  • Wci8757

    i will answer your question real quick. who made it that way with unions. the man who goe’s to work every day and doe’s his job and pays his union due’s to the people that are paid real good to look out for the members or if there is corruption then maybe you should look at the people who run the unions. not the working man.

  • Wci8757

    when im getting screwed i make it known. evidently it seems like there are alot of others who have lost there fight. maybe thats why this union is in the shape it’s in. to many scared people.

  • Dr Raymond Boothe

    The reason the industry is moving South is because steel plant owners in Southern States (right to work states) do not have to contend with ignorant management and USW political fools. They enjoy a non-union athmosphere and if their ignorant managers do not produce-THEY FIRE THEM.  They do not find them another job and give them a large retirement just for destroying another company like Mingo and Warren. Current SP is working to destoy two other fine plants just so their let their RG Steel leadership gain a big cash reward.

    Corruption exists at the highest level of RG Steel and their unions.Yet this corruption does not exist in the Southern steel plants, especially Nucor, TK and others. Now with Steel Dynamics in the corner of the the right to work states you will see them do even better. TK will do well because they find something that does not sell well, they get rid of it. Not like SP that drives it into the ground, trys to fool the public and never admits that they are wrong.Who sells the most steel to the largest manufacturer of cars (Volkswagen) in the world?-TK. I would not worry about their survival. 

    Hope you have at least a 8th grade education, because most on this site do. Even an 8th grader can understand that RG Steel and their managers need to be FIRED and reasonable plans need to be put forth to create a more flexible and profitable steel company. This would include starting up Mingo and combining it with Warren and manufacturing all the substrate steel for the Yorkville, Martins Ferry and Beech Bottom operations with those two plants.This will give SP a chance to create a more healthy reputation.

    Thanks for the information on the Yarrawaonga. Our torpedo tubes are loaded and we are now in search mode-LOL!!

  • Dr Raymond Boothe

    As I told you before the Steel Market Update Article leaves out a few critical sections just to keep RG Steel, the USW and its Maryland Politicos happy (after all they have to get paid). The L blast furnace shutdown was just another sign that SP was too unreliable to be a producer of quality tin. You really do not have to copy the SMU article word for word, because most of it is a candy coated article to appease RG Steel and the management of SP. It actually is rather sad.

    Customers are leaving SP for poor product, shipment unreliability and lack of customer concern. This information comes direct from customers themselves. I do not have to be paid to support the failure of a product. Employees at Yorkville constantly complain about the substrate coming from SP and why RG Steel is preventing their own plant to produce the quality substrate that they need. It is only a few miles away rather then being shipped clear from Baltimore which is incredibly stupid. A lot of Baltimore’s Steel is damaged in transit, and RG expects Yorkville to save it. 

    Even Warren (which is a higher quality mill) can’t send their substrate to Yorkville because it is mostly sold as a speciality steel, which is the highest profit RG Steel makes.

    RG Steel/SP can try to lure customers but the customers are not going to buy into a failed operation. Yorkville and the Ohio Valley plants are the only tin and coated operations in RG Steel that can make a significant profit. All RG Steel needs to do is to start up Mingo to support these operations as well as Warren’s hot end. Now there is an idea that is totally overdue. 

    • http://www.steelmarketupdate.com/ John Packard

      Dr. Raymond Boothe,

      I am not quite sure what article you are referring when speaking of the Steel Market Update article and RG Steel.  Our publication clearly pointed out a history of failures by the Sparrows Point (even prior to RG Steel) management since early 2010.

      To say we are in cohoots with RG Steel management and the union indicates your unfamiliarty with the SMU product, our background and our sources of information.  RG Steel management and the union have not had any contact with SMU (except their press person) although we would welcome them to communicate with our publication.

      Steel Market Update is an industry publication.  We are not a community news organization nor is our focus on the steelworkers or management of various mills around the country.

      It is not our place to attempt to disgrace or destroy RG Steel or any other flat rolled steel mill in North America.  Our publisher and owner was an active participant in the steel industry for 31 years – working for service centers, trading companies and a domestic steel mill.  We are quite aware of issues such as quality and performance which can impact the relationship between a customer and their supplier.  Our publication speaks to these industry topics three times a week.

      However, our position is to provide our readers – mainly our subscribers – with information about the industry so that they can make their own decisions about sources of supply, opportunities or risks.

      I understand the RG Steel Sparrows Point is a regional issue and that Mark Reutter and the Baltimore Brew have an obligation to present the news as they see it.  Those who work for the mill and who have an expressed interest in the success or failure of the mill should read all of the information you can in order to come to an educated opinion of your own.  You are welcome to read our Blog posts or better yet to subscribe to our services in order to garnish an even deeper understanding of the industry as a whole.

      Dr. Boothe, I recommend you re-read our most recent Blog post regarding the RG Steel Tin Mill situation.

      From B. Brew, here it is:
      http://www.steelmarketupdate.com/modules/blog/content/post.cfm?PostID=1378  

      If you read it word for word you should recognize we pointed out a number of failings at both the former management of Sparrows Point as well as the new management.  There is no “sugar coating” it when a mill shuts down a blast furnace in the middle of negotiations with their customers….

      I respect the workers at RG Steel as well as the management.  They have had a very difficult job to try to save the Sparrows Point mill which is not a bad thing for the local community.  They deserve an opportunity to right the ship and I would think the local community would be as supportive of that process as possible.

      Is their management perfect?  I can’t answer that question as I (unfortunately) do not have any contact with them directly.  You, and the citizens of the area around Sparrows Point are welcome to express your opinions (and that is a good thing in our country).

      Ultimately, it will be up to the customers and their relationship with RG Steel to see if they will be successful or not.  That is their job and not our call….

  • TACO

    Could Mittal buy us back? Now that the Sparrows Point mill is out of the tinplate market, Mittal can buy the Point back because the Judge’s ruling was only over tinplate. Mittal has its own mines and shipping fleet of transport bulk ships and is a great company to work for. Rennert can make a nice profit, have one less headache, and Mittal gets a big blast furnace and plant to add to its portfolio. Sparrows Point is back in the game without any short term or long term worries. Mittal has money, order books, mines, and is tolerant of the union, what more could we ask for!  Just think, if Mittal would have moved the tin mill operations to one of their other operations, they could have still owned Sparrows, why did they not think of doing this?

  • Warpig

    I feel that all of this talk here would not be going on if our international would not  have been so stubborn when it came to contract talks with severstal.  Severstal has invested over a billion dollars in north America and i just read where there intend to spend another 1.7 billion .

    Has anyone ever found out what severstal was asking for in contract talks that the union was unwilling to give up that we didnt have a contract for 2 and a half years .What was the difference in the demands that RG wanted and what severstal wanted

  • Walter

    Thank you Mr. Packard for setting the record straight. We all read your article and it is fair and balanced.  We (those of us in 21219) are honored that you read our posts.  Sorry if we get carried away sometimes and stray from the important issues which may be of real value and interest.

    Thank you again for bumping up many notches up our level of discussion about our neck of the woods.  It must be difficult for Mark to keep all of the talking heads under control and on track – freedom of speech to the extreme!

    I would like also to remind the guys texting out with their locker-room chat to the Brew that others are reading their posts too – some even in Board Rooms many miles (or countries) away from 21219.   These can be customers, as well as investors, so even if you are just joking, you must be aware that the industry is also watching and to please be respectful of our other readers.  A hurtful comment can cost jobs or hurt even a large mill’s reputation.  Take Dr. Doom, only hurtful & negative untruths about 21219. Yes, we have freedom of speech, and this also allows for truthful and positive words too!

    Mr. Packard, do as we all do – pay no mind to the musings of Dr. Doom – in one ear and out the other – he is amusing sometimes and gives us a good chuckle.  I imagine him as the Wizard of Oz hiding behind a curtain huffing and puffing!

    Thanks Again!

    Walter

  • Warpig

     kojac if what you say is true then i stand corrected. Maybe i have been in a union to long and have been blinded by their actions. I have never really liked the way the union has made workers feel you need them and then turn around and lie, feed misinformation and in general dont want to do the right thing and just keep their political machine going.and just worrying about getting elected again.

    Thanks for the info maybe it would be worthwhile to maybe looking into not having a union.

     

  • Warpig

     Dr. you say that you have seen these so called bad coils yourself in this comment and in the comment before this you say the reports say the coils are bad.. I am starting to think that what Walter says about you must be true. 

    heh …Walter may put some sugar on what he comments about and puts things in a comical way but i like that :P

    • observer 22

      I am an outsider whose job depends on the many trickledown jobs related to the steel industry in the Ohio Valley. However; my neighbor works at the Yorkville plant and constantly complains about the quality of coils coming from S.P.  ………. just saying…….

  • Outside Looking In

    Mark have you asked the good Dr. for an interveiw?If so will it appear soon so that we can hear his ideas without all the vitrol.If not is it because you do not want to interveiw him or has he declined.?Hoping to read an insightful give and take between two Steel historians.

  • Jr.

    Thank you Mr. Packard, I found your article to be fair and balanced and NOT at all what Dr. Boothe has said. All he can do is put down S.P. If his plan was so good other “experts” would be calling for the same thing as he and they are not.  Do we at S.P. need to do better….Yes. Will we do better…Yes.
    I see when the article on SMU doesn’t agree with what the good Dr. says he puts down the writer an starts name calling ,typical response to the truth. Just because others don’t agree with your opinion doesnt make them company lackies or “sugar coaters”. I understand that NO ONE on this web site knows more than you but allow them to speak their minds and voice their opinions with out the put downs and name calling

  • Shortchanged

    Gentleman, without being biased, I can honestly say Dr. Boothe makes more COMMON AND ECONOMIC CENTS/SENSE than anyone on this blog.  Without question !!!  Not one person in 21219 can debate what facts he has brougt forth.

    People of 21219, TAKE OFF YOUR BLINDERS !!!

    • Outside Looking In

      The problem is not so much with the plan that The Dr puts forth.It is the fact that no matter what anyone says they are wrong and he is right.Do you find it odd that for someone who is so concerned for the Ohio Valley Mills plight the first post from him isnt until January.If his plan is such a no brainer dont you think that they would at least explore it.The problem is we have Three separate plants and locals that have their own issues and faults.If the good Dr wants to be tsken seriously he shouldnt stoop to the level of the name callers.

      • Shortchanged

        The Proof will always be in the Pudding.  From April to December obviously “The Plan” didn’t work.  Start up in late January, and by the end of February that Plan doesn’t work-at SP. 

        AND, all along, SP continues to struggle with quality issues.  This CANNOT be disputed, it is black and white.   Outside, deal with “The Facts” and quit searching for the gray area.

        Is there quality issues at SP?  Answer honestly, save the “spin” and window dressing for “The Suits”.

        • Outside Looking In

          What type of steel has been shipped to Yorkville?Hot band?When was it shipped?

          • REALSTEELWORKER

            The GARBAGE from S.P comes to YORKVILLE as hot band in train cars. Started getting the GARBAGE when WARREN B.F. went down.When we get hot band from WARREN it come’s on trucks we have had no WARREN HOT BAND for about 2 weeks now HOPE!!! to get some SOON. As I stated earlier ALL S.P HOT BAND IS REJECTED. We CANNOT KEEP LOSING CUSTOMER’S.

    • BOF Boy

      Maybe common NON-Sense from Boothe. Doc should check his history books.  The BOF at SP is a production output record holder.  Doc also claims that L has too much output for the BOF???? He forgets that Tang’s National Materials operates Maryland Pig with iron supplied by L.  No problem – BOF does not call, send it over to the pig plant.  Now that is a balanced and productive operation. So why is he bitching that Sparrows cannot handle L’s output?  He does not even have the figures (or even knows about) showing the Point as one of the largest suppliers of quality pig in North America, maybe that is why SP is eating more ore than all of the Ohio Valley combined? Now Doc knows why we are burning up all that ore, case closed.  

      • Wci8757

        i will show you a case closed. where is the profit sharing at with all the ore your burning up.

  • Walter

    Hello Jr.   Yes, Dr. Doom is head of the Ohio Valley & WV  Ministry of Economic Development & Negative Propaganda.  His departmental mission statement is to unfairly trash all things 21219, you could not have said it better!!!  It is good to see that when push comes to shove we all rally behind and support our team leaders, as they are running the show, not the Dear Doktor of Doom!
    Instead of his trying to pull down 21219, would it not be better for Herr Doktor to question the unfair dumping of Chinese, Brazilian, Commie, and even our sweet neighbors to the North — the Molson Moosehead Drinking  Two-Faced Canadians for exporting their subsidized crap into the USA!

    The more the Doktor posts, the deeper he digs himself into a hole.  Now even the industry trade journals are adding their two cents worth to explain away Herr Doktor’s silly comments!

    Walter Phd. BS      MD of 21219

    • Wci8757

      and i noticed you made some mistruths to.

    • loud mouth 1190

      walter why dont you find something else to do instead of  talking shie about rg steel have you ever been in a steel mill you sound like a fucking ass hole on the computer no like a little kid talking about your ships coming in worry about the families from 1190 that are being torn apart and little kids being affected by this mess and dont know why mccall and gerrod better do something before this whole valley is ruined

      • guest 22

        1190 here also; but; Cant you express your opinion without the obscenities??? Mark is cool enough to include the Valleys comments after threatening to eliminate them. But you revert back to acting like  you’re still in high school. How about some mature reaction or questions before you ruin it for ALL of us!!!    

        • some one thatknows

          i did not say one bad thing did i if i did im very sorry

  • Warpig

     Dr. the bottom line is that it is Ira who owns the company and he feels that the way its being run is right.  it has been stated that RG steel goes as S.P. goes so why not get off the Mingo wagon and give some answers to what can be done to help the point.

  • Outside Looking In

    @Shortchanged.In the fourth quarter we were losing a reported million a day .We were paying spot market prices for materials.US Steel lost a documented 2 million a day for the fourth Quarter.They had long term material contracts that allowed them to pay $80tn for ore……or around $140 less than what we wete paying.The fourth and first quarters are usually slow.Throw in unforseen problems……..having to give discounts to lure orders back.Having to supply Severstal with their “Blood Steel”.Do you think that Severstal would want steel from us if there was wuality issuses?I know now matter how factual the information that i put out,it’ll be shotk down.As of December 21st we had nearly full order books for tin.We stil have nearly full order books for the NCM and coated products.

  • George

    Hi Doc, Good News for SP Dr. Boothe, SP  just  docked ANOTHER giant bulk carrier at our delightful Seaside ore pier.   The beautiful bulker “Double Paradise” is sitting happily alongside our dock of the bay with more yummy treats for the Beast of East and the Galvalume folks.  Little Toot just finished pushing her in.

    Zip-A -Dee- Doo- Dah– My on my what a wonderful day – plenty iron ore is coming Sparrows Point’s way!!!! 

    So many ships are coming into the Port of SP that I am thinking about starting up one of those old C.J. Langenfelder pile drivers and adding more docking space to accommodate the ore armada.   Walter was thinking about adding a Tiki Bar at the end of the ore pier to keep the crews entertained at our busy world-class seaside seaport.  We have plenty of last year’s Ralph Lauren Polo Shirts (small only) to sell to the crewmen.   Walter did find one XXXL to send to Dr. Dearest, he wrapped it and placed it in the caboose of the empty scrap train heading out West and I like that!

    Capt. Georgie

    • Wci8757

      george. i bet you would look good with a grass skirt on doing the hula with walter struming on the uke. i would make a return trip to see that.

  • Outside Looking In

    @Shortchanged……..December 23rd comes along and after pressure from thhe European banks in the syndicate we were required to have a bigger reserve amount which created the liquidity problem.RG jumps the gun and shuts down spooking off the large tin orders we had.It wasnt because of quality as the Dr.keeps claiming.Every time i ask how much it would cost to bring Mingo back to live i get the not much answer.If Severstal idled them as they did things here at SP then i would suspect it would be more involved than it seems.Should they have restarted Mingo,i dont know.I just cant buy into the conspircy theories.

    • Shortchanged

      Thank You.  I trust and respect your answer.  It certainly makes sense.  I wish
      ALL of RG Steel well!!!

  • Dr Raymond Boothe

    Same stories, NO ANSWERS TO MY QUESTIONS. Only the ore ship stories (I can continue to make stories about ships) and “Least of the East”Stories. This will go on forever because the people at SP are afraid to discuss the truth and come up with constructive answers. It only reinforces the obvious truth that the management at RG Steel and SP are the dying end of a mismanaged company

    The quality problems DO EXIST because I would not be hearing them from the employees and customers (the people who make the steel and the people who buy. Believe me folks these customers are NOT coming back just because our wonderful friends in Baltimore say so. A plant with all the problems that SP has (including a history of bad quality and liquidity) is not going anywere except in Baltimore Harbor. Now as I HAVE SAID many times BEFORE the cost to put Mingo back on line would be LESS than a quarter than what is being spent on SP. The repairs and approxmate costs have been laid out in detail-NUFF SAID. Also other people (beside myself) look at a 30-60 window for a restart. With all this said why would RG Steel hold back a plant that is ready to enter the market and contribute successfully? 

    Historically SP has been a problem plant since it went to the L blast furnace and the shipyards left. If Ira does not want Mingo THEN SELL IT TO SOMEBODY WHO WANTS TO OPERATE IT. Apparently they depend on the business the Ohio Valley generates, just like they do Warren.

    Again, I have not heard any direct answers-because there are none. Severstal was glad to get out from under SP. Now they are operating with great plants, not spending $100 million to watch L blast furnace slowly sink in Baltimore Harbor. I doubt ArcelorMittal or any other experienced steel company would now get involved.

    Propose solutions, sincere and concrete for the ENTIRE COMPANY.  Not the totally company sponsored BS coming from Georgie, Walter, Outside Lookin in, and a few others who get a little extra on their paychecks to support a mismanaged company.

  • MTE-OHIO

    Dr. Boothe, keep giving the facts as you have all along. These S.P. boys just don’t like it when you bring up the undeniable facts about the company as a whole. These plants that post on here only care about themselves and nobody else. They just can’t see the true path that Goodwin and McCall are leading them on. We”ll find out in April just how good R-G’s business plan is and the great management that Walter and Shipmaster adore so much.

  • Outside Looking In

    Lets start with 5…..couldnt tell you……you would have to call Ira and ask him.4Again have to call and ask the powers that be.But i find it hard to believe that they would let them sit idle if it would be so cost effecient to run them.As a side note i spent a good hour or so googling Mingo Junction Steel Mill.And you know i found more references to the Deer Hunter than anybody posting about mill.You deride us about our political help.Maybe if y’all made as much noise at home as you do on the Brew someone would listen.3What type of steel are you talking about?Hot band?When was it shipped?2.Tin Mill was a casualty of tge shutdown in December.Without that we would still havethose orders and the mill would be running.You should be happy the company didthe right thing and transfered the remaining orders.The startup of theidled coating line eas

    • Dr Raymond Boothe

      Just a few short answers to some VERY vauge questions.

      No. 5 -NO ANSWER-This is what I was saying.

      No. 4-Mingo Junction has produced steel in that location longer than SP. Apparently you are not using the computer successfully. If you need to know
      more read my book it might enlighten you. The Deer Hunter reference is not
      an answer, but just another stupid comment. Also read the AISI-that will tell
      you about the facilities there. ANOTHER NON ANSWER!

      3. Very short answer and to the point-EVERY TYPE of steel that is delivered in every chemistry.

      2. You are just guessing if the tin buyers and going to work with a company on the verge of bankruptcy. In the rational and logical sense NO. They had already decided to leave anyway. However it is to RG Steel’s advantage that they have quality downstream plants in Ohio and WVA that can complete tin and coating orders on time and have them delivered undamaged and on time.

      I am hoping that SP’s coating line will not destrop their markets for coated products.

      One thing I have been hearing might be very good for all the RG Steel Plants. Flat steel is on the verge of coming back in a big way. If RG fires up Mingo and ALL their plants are place them in the right position this could be a breakthrough with SP’s capacity, Mingo’s 80-inch mill and Warren’s special steel business.

      Let’s hope for the better.

      • Outside Looking In

        If it was up to this lowly crane operator they would’ve started all the mills at once or had a  plan to utilize the assets to their best potential.You misunderstood my comment.I said i did a search and it returned more hits about the Movie The Deer Hunter than it did for any comments about what is going on there other than here on the Brew.The only comments i can find from you on this topic are on the Brew starting after Christmas.It just amazes me that there is so little comment anywhere about whats going on in the Ohio Valley.As to guessing about the tin buyers  working with the Point.They only left after the events of 12/23.We had full order books of tin for the year.So by all means lets start all the plants up,You cant point to one of my posts or replys to any post that i have said not to start Mingo up.All i have asked is what are the costs and time frame associated with it.And just as i could not answer your questions about managements intentions you throw out the 30-60 day to recall and restart.And 25-50 million cost.I know you said a quarter of the 100 million but its never the low amount an anything.As to the quality issues your saying that everything that has been sent to the Ohio Valley is trash.Point me in the direction so i can read about the industry disdain for SP.I’m sure there is somewhere online where i can read the things that you are reporting.Just cant understand how i am to take everything that you post at face value when you attack anyone who doesnt agree or questions what you say.How  about posting something on your Facebook page so we can know that you are who you claim to be.

        • Dr Raymond Boothe

          First of all it looks like your “so called” high profit galvanizing line at SP will be down longer than expected. So another football is fumbled. I am also seeing more and more materials leaving the Mingo and Martins Ferry Plants. More materials being carted away (or stolen) for scrap. The financial situation must be getting really bad.

          The industry’s distain comes from SP itself. With all the problems in management over the last years and your current management’s record you really can begin to doubt that SP can do anything at all. This poor reflection passes over to the customers who are aware of these problems and go someplace else.

          You are in good position with a $100 million in your pocket (gift) and the support of a billionaire and the Maryland government. The other plants do not have those advantages. They do it the hard way-THEY EARN IT. RG Steel prevents Mingo to prove them wrong, they just maintain the facility so they can strip everything out of it and sell the rest off.

          Meanwhile, Ira and RG know that Mingo’s 3 year off-line limit  is soon and about 700 steel workers will lose their insurance and benefits. This is another reason that Mingo will not being started up. I really blame this with both RG Steel and the USW working together. If this happens it should be the final call for the USW as a national union. There would no need to belong to the USW anywhere, ever again.

          I have followed the Steel industry for over 50 years. I visit the plants and I listen to both the management and its workers. I am not a part of the USW (thank goodness) so I can write the truth abouth certain matters without the fear of losing my job or the fear of losing a political office. However, when I see a situation so unjustified I tend so write about the entire situation. And the RG treatment of Mingo is terrible because they are spending a multi-million fortune on proping up a plant that would have been closed in any normal business situation.

          This is true to form concerning people who don’t care about the ENTIRE company’s situation.

          Keep hunting, it will keep you busy.

        • Walter

          Outside, it looks like the lobby from out West wants us out of the picture so that are the only game. They do not cry for us , but we have to cry for them -notice how one-sided they are.  Yes- our hearts go out to everyone no matter where they live and work, this is the difference between Marylanders  and the out-of towners – we have a heart.  You are on to something, but thankfully no one in charge is paying any attention to their fairy tales.   You are making sense with FACTS , keep up the good posts.   Thank you

          Walter 

          • Wci8757

            walter. you will never be out of the picture. remember you have the beast of the east. the golden egg layer. your own words. when can we expect it to drop another golden egg.. i want to buy another rolls royce.

    • Bake4526

       there is no Mingo Junction Steel mill It was Wheeling Pittsburgh Steel before the Boob Brothers

    • 1190memberforjustice

      you big dummy, lmfao!

  • RealSteelworker

    I read the article by John Packard and must point out the
    comment by Frank that I figure is a SMU subscriber that agrees with the Dr and
    since were being honest lets get the whole story out there. Frank must be in
    the steel business to comment on the SMU site unlike Walter, George and me that
    can post our opinions on the Brew. The only ones name calling like two children
    in a school yard are the plants Walter & George because they are not doing
    their jobs as the ministers of propaganda well enough. 

    • Outside Looking In

      You dont have to be a subscriber to post a comment on Steel Market Updates Blog.You only have to be a subscriber to read their newsletter.

  • Outside Looking In

    The startup of the coating line was in the works before the shutdown .The startup was needed because of the orders volume for the NGL.Again isnt that what you have been asking for?To find markets for our products.The NCM also has nearly full order books.1.As to the cash i dont have a clue.But again if the suits thought that by opening Mingo would do the trick dont you think they would.If i have learned anything by working for 4 billionaires in a row is they dont hesitate to go where the money is.

  • Dr Raymond Boothe

    These was a steel mill called Mingo Junction way long before anybody thought about SP. Calling it Mingo Junction is just a collective term that refers to the owners of a plant that has been there for many years. Going back-RG Wheeling, Severstal Wheeling, Wheeling-Pittsburgh Steel (under the Boobie Brothers), Wheeling Pittsburgh Steel, Wheeling Steel Corporation, Carnegie-Illinois Steel, Carnegie Steel (the United States Steel Corporation), National Steel Company, Aetna Standard Iron and Steel Company, Laughlin and Junction Steel Company, Junction Iron Works, Auction Iron Works Company, Mingo Iron Works Company (founded in 1872).

    There is still a modern steel mill at Mingo Junction today owned by RG Steel. One of the most modern and versitile in the United States that RG will not operate because the crony management at RG Steel and Maryland politicos continue to worry about their jobs and sink multi millions into a money pit hoping to break even-now thats a business plan.

  • RealSteelworker

    Outside Looking In I have been reading SMU for quite some
    time now and not once did I see a comment that you posted unless your name is
    Frank and then that would make sense why I didn’t recognize you. If indeed you
    are Frank I would like to applaud you for your honesty about the situation at
    hand but I don’t think George & Walter will be too happy when you tell the
    truth.

    • Outside Looking In

      Didnt say i posted.Said you dont have to suscipe to pist on their blog.You only have to subscribe to veiw their newsletter.Everything i have said on here has been the truth.Its just that if you say anything positive about SP you are either a plant or get attacked.The people working the mills and on steelside are doing the best with what we have.Do i wish all the mills were up and running…..yes.Do i wish that management had a clue…….you bet…..but for me to be constantly attacked because i say that we are regaining orders is just ad wrong if i said that they shouldnt reopen the idled mills.

  • Steubenville 1190

      Dr. Boothe ,

          The problem that RG STEEL say they have is , when they were forced to buy all 3 plants Warren ,Sparrows , and Wheeling is that they had to decide when the economy was still bad and they were wanting to start the plants , Rg Steel said it would rather start Sparrows and also keep Warren running because it would cost them 30 million a month with contracts with vendors and paying sub and benefits to Sparrows employees instead of keeping Mingo idle and only costing them 5 million a month to keep Mingo idle . They told us that the blast furnace at Sparrows can put out 3 times the amount of steel with the same number of employees and that there wasn’t enough market to justify starting both .So , if they had started Mingo and left Sparrows down , you would have been still losing 25 million a month because of what I said about Sparrows contracts and benefits to employees . If Mingo would have started they would not have been able to make up this amount .
         I agree with all that you are saying about poor management and Mingo would have been a better option , but you see why they didn’t give us a chance here at Mingo . The best option would be for the international to have let us be bought by separate companys because they would have been able to put money from each  plant and not drained a company forced to have to buy all 3 mills and put them in this situation .They did put all their eggs in one basket and it is draining us . I also agree that now it has been over a year and if Ira has no intensions of running Mingo , then sell it to US STEEL or sell Sparrows to the argentina outfit that wanted to buy them and put alot of money in them, and he could then combine Warren and Mingo and put the money made from selling sparrows into Mingo and warren .The way the management is running us now is a train wreck waiting to happen , and that is what is going to happen.
        There is alot more activity going on in Mingo with vendors and meetings by management . Hopefully they will give the poor people from Mingo a chance to show they can make a quality product again .They are hoping to have Mingo ready to operate and may run Mingo on the weekends  making slabs in case something happens at warren or sparrows and they will be ready to go instead of having to wait 30 or 60 days to get going . Lets hope the management in these meetings are going to finally make the right decisions and this will happen soon .Good luck to all plants .

  • Steubenville 1190

      You say you have a heart Walter ? Did anyone at the other plants ever think about taking a collection up for your union brothers working at the same company ? It would have been nice to see you guys working all along to give and they could have bought Turkeys for Christmas or Thanksgiving to the laid off workers . You say you care but you continue to post that the beast of the east will take all the scrap Mingo and other plants can give her ? You need to look in the mirror and see if you honestly care.I wish the best for all and hope if it takes you guys oing well to give Mingo or any other plant a chance , then I wish you the best and good luck .We at Steubenville have been taking a beating over the last few years . I hope good news will come our way soon.

    • 1190memberforjustice

      forget about walter go ask your 1190 union reps if they care if there scraping every thing in mingo, there the ones whos letting them do it, mingo will never run again with these people in office, international on down. go ask the people thats on the friends and family plan to buy you a turkey, turkey.

      • Steubenville 1190

        You sound like a true union person .They aren’t scraping Mingo , they are taking scrap from the north plant in steubenville .Your real brave behind a computer with your turkey comments.

        • 1190memberforjustice

          only meant to put down one turkey,not trying to be brave and i dont have to hide from nothing or anyone, because i am a true union member, i believe in seniority, unlike the1190 reps at the union hall.these people have not done anything for three years, union meetings same as three years ago nothing but lies, go ask them for help and see what you get. unless your a member of the friends and family plan you get NOTHING.

      • some one thatknows

        i think your right you need union people in there with some balls 1190 needs people back in office that would try to stop stuff from leaving these plants i have a couple men in mind i seen them in action mallas shoppe fuscardo jr vendette these men are strong union men they wou;d have media involved every day till the got answers maybe you will see these guys if you dont need your meetings all reese and goodpatures are also good union men

        • 1190memberforjustice

          yes i totatly agree these guys will get it done for sure, but will they run, are they layed off , there saying you cant vote or run if your layed off which is hard to believe because we are supposed to be union, do you know if its true?

        • imnew

          maybe thats why you need meetings so guys like this dont run they would be a thorn in santos and mccalls ass and the company neither one want men like this good union men

          • msc#1operator

            y u gotta keep changn ur name? 1st u are loudmouth1190 then someonethatknows now imnew…..makes me think u might be planted in here by friends and family or by company…..just be real and who u are….u make some good comments just pick a name and stay with it so we can chat….

          • some one thatknows

            give me your real name i work down on the old block maybe we can meet in person and talk about our problems i have do problem with doing that

          • imnew

            and if you are one of those kids that dont even have the senority to be working i probably dont have much to say to you im sure you dont no the first thing about union nobody is changing there name there is 3 or 4 of us at the shadyside library if you are from down river i will meet you in person and have a cofffe and chat first tell me if you have at least 10 years if not nothing you say matters to real union men

          • msc#1operator

            is that u boulder?   rusty?    whats up?? did u hear mike b. put in his 2 week notice today?   hard to tell what boss u will have now…

          • 1190memberforjustice

            at least 10 years, there are people layed off with alot more seniority than that, 10years to 20 years are members of the 1190 friends and family plan. 

          • msc#1operator

            i dont like the friends and family plan but what are those guys supposed to do? quit their jobs? go on strike? if u want to put the blame on somebody there is alot to go around….esmark, severstal, rg steel, mccall, santo, crowe…..these are the real people who destroyed this company and union….

          • 1190memberforjustice

            i didnt say its there fault, of course they should not quit there jobs, everyone does blame the  1190 union reps. and thats where the blame should be.

          • msc#1operator

            i keep hearing thru the grapevine that if u want things to change in the union hall to vote for ernie gambellin……dont know the man personally, dont know what he stands for but keep hearing he is a strong union man….was he the one who burned the contract? anyone know him or what he is about?

          • martyhood

            Ya he burned the contract..  People dont change the system at the local level. The system changes people. Some with good intentions entering into office quickly drop into lockstep with the international and use their position to help themselves and their cohorts. The position of local president is  meaningless . In my 40 some years of dealings with the USWA it is always the same. Gambolin will be a carbon copy of our last 10 or so presidents. The Union system as it today is useless.  The people who go to work everyday, do a good job, and try to make the workplace better are ignored and screwed over by the idiotic agreements made by these useless and self serving leeches. I challange anyone here to tell me the last union official that was a good worker at any local. Dont be naieve.
            these people dont want these position to help you. Just to help themselves and followers.  Someone prove me wrong

          • 1190memberforjustice

            i couldnt have said it better, you know what your talking about, i wish you would run. im layed off and they say i cant vote but if they let me vote and you run you got my vote. what they are doing with seniority is a shame.

          • guest

            larry mallas

          • Jbuck

            He’s the one that burned the contract  He’s a 16000 badge number who should not be working  He’s on the contarcting out comm. that gives our work away He just happened to have a can of lighter fluid that day, all show       wants to be pres. to keep working

          • Wci8757

            he burnt the contract. i didn’t think sh_t would ignite.

          • ready 4 action

            he is a man who won’t be a puppet for santo, like the rest of them were. I think earnie is for real. The other ones running had their chance  and did nothing! Ernie deserves a chance to prove himself. Don Hubbard deserves a shot at Vice President also. what do we  have to loose?

    • msc#1operator

      Y hasnt our own local 1190 or even the international stepped up and passed out food like they have in previous years when our members were layed off or locked out?  All these years of paying dues when we were running full tilt, where did that money go?I know we had to pay carmen 80hrs a pay to run the hall, but surely there was money left over to buy a box of food for people.

      • Wci8757

        the only time you will see the international is when you start back up. they will be the first one’s there with there hand out for union due’s. i would like to tell them if your not here when times are bad,then i don’t need you here when times are good.

      • 1190memberforjustice

        nothing left, but he kept his son working with no seniority at all and we paid him to do it.

  • Dr Raymond Boothe

    Over the last six months RG Steel has been talking and having meetings concerning a restart of Mingo. There have been close to twenty plans presented for this project, but as of today they just can’t figure out some of the financial questions I have discussed on the Brew.
    These multiple plans are exactly what I mean by poor management and disorganization.
    This is becoming a feature of RG Steel and forcing many customers to back off right at a very critical time in the steel business.

    Speaking of a very critical time, the huge ArcelorMittal Cleveland Works is now HIRING employees to restart their “West Side BOF and Caster.” This was the one formally owned by J&L.This caster has not operated in 3 years. When it comes on line it will add an additional
    800-900,000 tons of capacity to that plant. They are planning for this capacity to be available in late April when the predicted increase in the sheet market will occur. ArcelorMittal Cleveland is one of the most efficent mills in the country and this restart will
    make a major impact.

    RG comments on this issue have been muted because so many customers are currently irritated by SP’s performance and their concerns about RG Steel’s long term viability.
    RG with Mingo Junction’s 80-inch mill can take advantage of this market with minor repairs but they must be made now.

    Instead of thinking about a surge in the sheet business RG Steel is again pouring their
    gifted cash into a closed galvanizing line that needs repair. This is a little crazy because the non-residental and agricultural markets that it would serve are some of the most lousy steel markets in the country. The No. 4 SP Galvanizing line has some issues that it will require a lengthy maintenance outage-at this point I have not exactly what these issues are.

    • Walter

      Doc. This is all we need right now- an additional 900,000 tons out there diluting the watered-down customer base.  You are right that a surge is predicted for late spring of this year (I agree with you that the lead time to get the company’s act together is growing thin or has already passed for the April/May buying season).   Even with the increased customer demand, it looks like history is going to repeat itself if we end up with excess capacity, somebody is going to get weeded out again and the surviving companies will have had to cut profits again that the numbers will not look too good for them too.   I must admit that you are hitting the nail on the head and the investors are still banging their heads against brick walls. If they would only listen to what is being said by you and the guys in the field they could turn a nice profit and everybody could pay their bills and get sound night’s sleep.   Good post Doc!

      Walter

      • Wci8757

        walter, what do you think your doing with the beast of the east. your flooding the market to. george said you got ore carrier after ore carrier arriving every hour.

      • WhgPittMingo

        Walter, make up your mind about whose side you want to be on and stick to it man !! Have some convictions in life instead of going to your grave being a flip flopping, fence sitter ! If you listen to what the doc has said consistently, HE WANTS THIS COMPANY TO MAKE IT !!!! He is laying out something that nobody at the top of RG’s mis-management team will concede to. They would rather stay the course until the company is smoldering in bankruptcy ashes ! How does that benefit any of RG’s investors or employees ?  We already know how the movie ends by repeating the same strategy from  last years operating game plan. We also know that McCall and Goodwin are one of the same kind, and neither is competent enough to be at, or near, the helm of this ship ! Just based on their resume’s alone, they would be hard pressed to find employment flipping burgers !What has either one of these two ever accomplished besides destroying previously viable steel mills?? Dead silence???????????????? You need to take a few steps back and look at the big picture and not just the snapshot you happen to work at !

  • Steveiez

    My opinon; retstart Mingo and RG ‘s problems will all go away.

  • Dr Raymond Boothe

    It has been confirmed that the Allenport Plant (formally owned by WPSC) has been sold by RG Steel to a group called Mon River Partners for $6 million dollars cash. The Mon Rivers Partners is a development group interested in making the site available for several different small industries. The site is quite large and has many large steel buildings. However some are unusable and will have to be demolished.

    At one time the Allenport site had a large tube mill (demolished) and more recently a pickle-line, tandem mill, box annealing facility and a temper mill for the final forming of light-flat rolled carbon steel products. The remaining amount of equipment inside the 400 acre tract is unknown.

    This sale comes at a time when RG Steel is looking to sell off unused facilities for cash. Although RG steel could use the scrap for production, the $6 million in cash at this time seems to be the most immediate need.

    • Walter

      Dr. Boothe both you and Mark get the breaking inside news before anyone else does- sort of the Drudge Report for scooping the steel industry news. 

      To difference between Mark And Dr. Boothe is that Mark in a professional investigative reporter and presents information and facts for the readers to use as they see them, Dr. Boothe presents facts, interesting side stories, praises our mills or cuts our hearts out like the latest news “show” hosts.

      So – Mark is the like Cronkite or Ted Koppel

      DR. Boothe is like Rush or Michael Savage

      Everyone at the after work Friday night meeting at Mickey’s Annex is in agreement and they wanted me to send out this reply to the both of you.

      “We love the both of you, the beer is cold  - keep up the news releases because 

      “Inquiring Minds Want to Know What the Hell is Going On!”

       

      • Wci8757

        walter. if you want to know what’s going on just ask george. he knows every thing that’s going on,

  • msc#1operator

    shenango steel bosses sayn mark lesonick has quit msc….dont know how true that is but i didnt see his car in parking garage today…..lets hope this is for real….

  • Mbr2536

    I have been reading these comments for quite some time although I tried to quit it is too entertaining first I would like to say i have no idea what Ira, goodwin and the boys are thinking or planning with that said some things i write will be mostly fact with some speculation i worked in mingo juction which i will b referring to as rg steel wheeling llc for those who don’t no the history for 33 years mostly at the blast furnace, whg pitt steel has struggled quite a bit over the past few years if not for a buyer wouldn’t exist (speculation) Essar visited the plant many times with the idea of building a blast furnace to fully utilize the cogen csn and cvrd visited the plant many times which may have been a good fit considering they have their own ore mines but they came out and said they would need to reduce the workforce to be profitable the union balked at the idea enter Esmark who visited the plant maybe once or twice promised every employee a new car and a swimming pool told the union how great their contract would be knowing they were not planning on being there long enough to honor it I believe Severstal had good intensions until the bottom fell out in 2008 rg steel also realized the workforce must be reduced but decided to do through attrition and starvation I have no idea how the union decides who to play hardball with and who to go to bed with either way it makes no sense the 60 million dollar question is if seveerstal could make a profit why would they not restart the plant? it took 8 people a shift to run #5 blast furnace not including support maintenance, utilities railroad etc there are approximately 12 of these people working at msc some of the rest have either died retired got disability retrained and move on, would they come back i don’t know. I have no idea about steelmaking or the hotmill I would speculate it is about the same. all i know is you can’t walk in off the street and ba an efficient operator on the plus side we have retained four very capable blowers and melters which they have sent to sp and warren to help with their disasters I would love to see the plant up and running for the good people of the ohio valley It will be four years in august 2012 that #5 furnace has had wind on it I don’t know after all this time how long it would take it to be fully operaable not to mention the stoves without some serious cash. at best it can make 4000 tpd with lots of hbi and zero delays one of the biggest issues with this furnace is a single taphole which requires maintenance on a monthly basis which leads to lost production bell top which requires replacement more often than a paulworth top I know our top is new just thinking of the furture the cost associated with having slag pots rather than a slag pit they have talked about a pig machine which would help for almost as long as the day they quit pigging iron over 30 years ago if rg steel doesn’t put some money into these facilities sp and warren included they will be out of the steelmaking business fact or specuation you decide

  • Dr Raymond Boothe

    I am hoping that RG Steel will survive but the clock is ticking and ticking faster than usual.
    There is a big steel market coming soon and RG needs to get ALL its ducks in a row to take advantage of it. They need to get Mingo up and running soon to it can support the downstreaming business as well as to sell large coils from the 80-inch mill. Warren hopefull will be able to supply speciality steel which will be in high demand. If the hot end at Warren during this time, then they can use Mingo to help fill in the gap. This will make the high volume advantages of SP able to go fully into the sheet business. The investment costs are not high, but the profits could make or break the company.

    As I said before, big companies, especially ArcelorMittal are really gearing up for this possible increase in production. I am sure other manufacturers like US Steel, Nucor and others are not blind. Not only has AM a huge plant at Cleveland, you are looking at Burns Harbor and Indiana Harbor. A total of 9 big blast furnaces and 11 BOF furnaces.

    What I am saying is stop fighting about inner-union problems and get the union to get Mingo Junction started and the rest of RG prepared. The time for “planning” is about to run out. The start up of an additional blast furnace, BOF and EAF at Mingo could be a no brainer to increase RG profits and help secure the company.

    A note to EVERY plant-Quality, shipping and quality service will secure customers and the reputation of ALL RG plants. It seems that Yorkville, Warren and Ohio Coatings understand this issue. The current management has NOT figured that out yet. Goodwin, McCall and other upper management had better listen because if the company fails because of their inept leadership, there will be thousands of out-of-work steel workers who will be VERY UNHAPPY (to say the least).

  • Dr Raymond Boothe

    The No. 5 blast furnace was in excellent shape when it was closed down. A number of repairs and additions were completed before Esmark sold it.. The stoves and controls were in excellent shape and it should be (if nothing unknown happened during this year) should be ready to go. It is still capable of 4000 tons per year with injections of HBI. It can supply the Consteel EAF with plenty of iron. At these stage the most important item for the BF is to install a pig machine (to save pig iron for the EAF) and possible install another tap
    hole for the pig machine or if production increases.

    It is important that an experienced crew operate it (even if it is small). It is actually a very productive and modern blast furnace and it is one of the most productive blast furnaces in the United States for its size (as listed by the AISA). The blast furnace and EAF can contribute to RG Steel in 30-60 days. The EAF has a crane issue I am told, but it is not too hard to repair. The two large BOF’s will need repair to contribute. Again a major crane issue and problems with the ductwork will require work, but can be made later after the EAF and the blast furnace ramps up.

    Of course with any ramp up you need the raw materials on site. This situation needs for RG Steel to stock Mingo quickly in order to be prepared.

    The slag situation right now is a question because historically WPSC has used slag cars and deposited slag at a nearby dump. However there is now an area near the blast furnace that might work better as a direct slag dump. The problem is if there is any cost advantages,
    production slowdowns or complications with the current slag company. (?)

    The main advantage at Mingo more than most plants is its multiple steel manufacturing systems. If something happens to the BF (or it needs repair) the EAF can operate alone on scrap and pig iron (or HBI). If the EAF goes out the BOF can take over. At any rate, in MOST cases, the steelmaking process will continue. Also the amount and type of steel produced can be changed in a very short period-as orders and markets demand.

    • Steubenville 1190.

       The crane issue at the EAF has to be fixed before anything can be done at the caster and the EAF . 269 crane has a large crack in it and would cost around 250,000 to repair approx. THey are still trying to decide whether or not it is worth starting and running the EAf on the weekends which is off peak hours for power and would save them money and they would be ready to operate and ramp up if something happened to WARREN OR SPARROWS . I hope they finally make the right decision and get MIngo started for the company and the people soon .

  • TiredfromOhio

    Yorkville has laid workers off next week because some crane rails are being replaced by an outside contractor. 

    • Jerry Conners

      You need to be more accurate in your posts, Tired. No MTM’s or MTE’s  from Yorkville are on layoff, or have been on layoff for the better part of 2 years. In addition to Yorkville’s maintenance group, a crew from Mingo has been at Yorkville doing work that would otherwise go to outside contractors.  The crane rails you refer to are over the PA, #7 Washer, and #11 Temper Mill building which have needed repair for some time.  The layoffs you speak of are in production, in that that entire runway will be down for 4 day, affecting production levels throughout the mill. The work should be done in the alloted time, and production should resume normal operation levels next week. The contracting out committee contacted our MTM’s about the job, and they felt they may not be able to complete it in the time allowed. Yorkville already has additional MTM’s from Mingo working on projects that would be contracted out. I would like to see all work kept in house, but there are times you can’t. I commend our contracting out committee for their efforts to use alternative ways to get jobs done using RG employees, both from Yorkville and Mingo. If you would like to discuss this further, stop by the hall next week on Monday, Tuesday, of Wednesday between 8 to 5. I’ll be happy to address any of your concerns then.

      • outasub

        does anyone know how long the layed off peoples insurance is good for, i heard one year after your sub runs out.

      • Walter

        You are right Jerry, We cannot do everything, sometimes it is faster and less money if we sub the work out.  Remember the Jackass of all trades and master of none?  I am in agreement with you 100%,while we would like to do things in house, sometimes it is best to bite the bullet and let the outsiders get the show on the road for us.  Very informative posting – Thanks!

        Walter

        • pastsprep

          walter we already know you and george are plants by the union and company and no one but george gives a good shit what you two say you two are worthless and thats a fact.

    • imnew

      if this is true thats a shame we have people at 1190 that could do this work ci company dont want to renew benefits wheres the union they sound like 1190 i always thought yorkville had a pretty strong union guess not to close to the company to    we are all going down hill

    • imnew

      thats great wheres the union we have people at 1190 laid off and has done rails a 100 times yorkville must be weak like 1190 thats all we need

  • Dr Raymond Boothe

    Yes, the EAF  .269 crane at Mingo needs to be repaired as soon as possible. $250,000 is
    a small price to pay to get it up and running. Also the idea of ramping it up on off peak hours has also been proven to be a productive idea. This idea has been successful at a former Copperweld Steel Mill in Warren, Ohio that is currently operated by a Russian Company. The EAF’s are only operated at night during off peak hours when power is cheaper.

    IT IS VERY IMPORTANT that all RG Steel Employees and Unions call all of their local politicians and community leaders to get the local power company to help lower the power rates so these steelworkers can get back to work. This is a win-win project for everybody at RG Steel. Start getting on your phones and start calling NOW!

    Also it is important for the blast furnace to get a mechanical check over also. I would urge RG Steel to get the blast furnace maintenance crews back on the property to evaluate all the aspects of the No. 5 blast furnace.

    • msc#1operator

      will u have copies of ur new book at the april 24 wheeling library discussion?   looking forward to meet u there ….

      • imnew

        doc will you really be at wheeling library april24 if so what time i really want to meet you doc have you ever heard of jim bradly he use to run wheeling pitt he was a real good ceo  i tnink we need some one like him back they say the guy named cerra that runs mingo and warren is a real ass hole also have you heard of him he does not want to call anybody back even if they have enough senority to hold hes worring about renewing benefits i hope if rg steel wants to get mingo ready there not worried about renewing the maintance people that would have to be called backyou think a multi million dollar company that wants to thrive would not worry about benefits for its employees i bet you cerra and ira has benefits

    • 1190 Shame

      From I’m told there is no union down there anymore because seniority got thrown out when the union put equipment  tenders on.

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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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