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Several groups emerge as potential buyers of Sparrows Point

Brazil's CSN is among the potential foreign buyers of the bankrupt steel mill, sources say. (UPDATE: Nucor identified as domestic bidder.)

victory rally 1942

A World War II Victory Rally at Sparrows Point. The now-shut steel mill may get a new lease on life.

Photo by: Hagley Museum and Library

(UPDATE on Thursday, 7/26, 7 a.m.: Sources tell The Brew that the domestic steelmaker who filed bidding papers yesterday for the purchase of Sparrows Point is Nucor. Please note that this is a preliminary step, subject to change among all of the parties, as the Chapter 11 sales process moves forward.)

At least three companies, two from overseas, filed papers by today’s deadline as potential buyers of Sparrows Point, giving the first concrete evidence that steelmaking may return to the plant where 1,500 workers are laid off.

Sources identified the two foreign bidders as CSN, the Brazilian steelmaker, and Optima Fund Management, a hedge fund associated with Metinvest, a Ukrainian mining group. A domestic steel company also submitted a bid for Sparrows Point’s assets by today’s deadline.

Each of these concerns say they want to restart operations at the Point, which were closed two months ago after owner RG Steel filed for Chapter 11 bankruptcy.

Today was the deadline for submission of qualified bids for assets owned by RG Steel.

In addition, there were one or more bids placed on returning RG Steel mills at Warren, Ohio, and Wheeling, W.Va. to full or partial operation, sources reported.

Altogether, more than 18 groups submitted bids for one of the three steel mills, with many of these bids from scrap dealers and related companies who seek RG Steel’s physical assets, such as machinery and raw materials, and do not plan on restarting the facilities.

The Sparrows Point Steelworkers Local 9477 had pinned its hopes on CSN, which had blown hot and cold over the purchase of Sparrows Point even before RG Steel filed Chapter 11 bankruptcy on May 31.

CSN engineers visited the plant, which would help the company gain greater entry into the American steel market and also serve as an outlet for tin plate, a mill specialty, for sale in South America.

The Optima Fund/Metinvest group had sought to purchase Sparrows Point from Severstal in 2011. It was rebuffed by the Steelworkers union who favored Ira Rennert, the billionaire owner of RG Steel, which racked up more than $440 million in operating losses before it filed for bankruptcy.

Seeking a Stalking Horse

Under the rules approved for the asset sale, a potential buyer had to submit a bid by noon today to qualify, along with a cash deposit of 2% of the proposed purchase price.

RG Steel has until next Monday to designate a leading or “stalking horse” bid or bids. This will establish a base line for the sale of the three plants and will enable the potential buyer to negotiate with the United Steelworkers union over successor agreements for a labor contract.

A final auction of the properties would take place on August 21.

If no stalking horse is identified, an auction for the properties would be held on July 31 in the law offices of Willkie, Farr & Gallagher in Manhattan

All parties had signed confidentiality agreements prior to today’s bid deadline.

A spokesperson for RG Steel did not respond to an email request for comment tonight. Officers of Sparrows Point Local 9477 USW could not be reached.

Be sure to check our full comment policy before leaving a comment.

  • Fordtrkfan

    Well I guess there could possibly some light at the end of the tunnel. It’s not all set yet, but at least there is some light. Things could still go wrong, that’s for sure. Thanks Mark for your hard work getting these articles out as quick as you can!

  • Reality

    Who or what determines the “best bid”?

    • baltimorebrew

      From B Brew: RG Steel management, led by John Goodwin, heavily influenced by owner Ira Rennert and the secured bank lenders, led by Wells Fargo and General Electric, who want all their money back. If a “stalking horse” is designated, the USW will have say a say over a successor contract. PGBC should also have a say over whether the pension plans sponsored by RG Steel at Warren and Wheeling will stay in effect, be altered or get dropped by the “best bidder.” -MR

      • wciheycraneman

        Any names on the bidder(s) for the Warren and Ohio Valley plants?

        • pointworker

          Heard Rennert for Warren and SDI/Park group and Esmark for WP/WCC.

  • Mtngirl

    Thank You Mark, I have searched for news on the bidders, I only found a couple of article’s, none were as informative as yours.

  • Dr. Raymond Boothe

    The best deal for SP is CSN. I really feel that a steelmaker that has a large amount of ore and a plant to use it in mass is the best chance for SP’s future survival. The tin mill can be rebuilt to service customers in Brazil. CSN has been trying to enter the US market since WPSC nixed them. I would like to see what they offered because their stock has been struggling a bit this year.

    Again Renco could be stalking Warren again for a reorganization. Esmark is still looking for partial control of Wheeling Corrugating. Looking at Severstal Wheeling as a whole is SDI and Park Industries. More yet to come.

  • Chucko841

    Thank u Mr/ Reutter  You have been the voice in the wilderness threw all these  trying Times

  • Walter

    I told everyone just to relax and wait for the Brazilians to take over Sparrows Point and everyone said that I was a dreamer. The Brazilians really want to run SP full out because they have all the ore the L Furnace could ever ask for. They will have their foothold in the U.S. market, and even export Tin Plate to all of South and Central America.

    Even our Dear Dr. Boothe is excited that Sparrows Point is on its way to expansion and great success. Buying SP is just what CSN needs to put the company over the top. The Beast of the East is ready and willing to flood the world’s market place with iron and Steel products. I hate to say I told you so – but I did – and I hope that everyone is as happy as I am that the primary side at SP will soon be making iron like it was WW II – Happy Days are here again in 21219!!!!

    Dr. Walter    Phd.BS

  • Dr. Raymond Boothe

    Also remember these are only listed as potential buyers and there is still a lot of water to cross before we reach a definite sale. Even if CSN does purchase SP they are not going to crash the American market very easily. A lot of repair and rebuilding has to be done at SP along with cleaning up the environment. And even with cheaper iron ore, they still have two major competitors for steel sheet and tin in the United States-ArcelorMittal USA and United States Steel.These two companies alone can shed a dark cloud over SP. Not all of their blast furnaces and steel plants are operating now. They can be quickly be ramped up at a minutes notice.

    If SP is purchased by CSN (or Optima -or other stalking horses) I suspect that they will produce slabs to contribute to their overseas operations. CSN could send coils to their North American Operations and slabs to their operations in Brazil. CSN would have to do a lot of repair to the hot strip mill at SP if they wish to produce HSC. It is too small for what they want to produce. The same is true for SP’s tin and coating facilities.

    We will not know who the stalking horses are until next Monday for all the plants. These things can change at a minutes notice, so I would advise everybody not to get too
    excitied or their hopes up too high. These things can change with the wind and the days ahead will seem like weeks. Pray for ALL the steelworkers, that they will ALL be treated favorably when that final moment comes.

  • Steubenville 1190

    It’s sad that the ones that live in ohio have to look to other sources for information about the ohio valley , like going to the brew . Thanks for letting us vent and keep each other informed about the plants Mark . You do a great job . I only wish we would have stuck together in goods times and bad , instead of bashing each other . I wish someone runs all the plants and gives us a chance to be strong again . Good luck to all and may god bless .

  • Hot Metal Guru ( Jack Rose )

    Hello Mark Reutter !! Top of the morning to you my friend !! I just wanted to take a moment to extend my sincerest thanks to you for being an unhindered and unwavering champion of the working men and women of steel !! The outlet that you have continued to provide for us and the information that only you are able to disseminate is indeed invaluable and extremely informative in these very trying times for all of us. For that I will always be grateful ! You are indeed the one true friend of steel !!! Best to you always !

                                                                        Jack Rose

  • Hot Metal Guru ( Jack Rose )

    Say what we will about that old steel fossil Walter, but I admire and respect the hell out of him for his loyalty and conviction to steelmaking in Baltimore !! There have been times when we were on opposite sides of the same fence Walter, but your unwavering support for SP and your people has certainly impressed the hell out of me !! You should be at the helm of that USW ship !

  • Harry B Alls

    Nucor, I am unaware of them operating any blast furnaces. Doesn’t bode well for the Beast.

    Correct me if I’m wrong.

    • amused observer

      Nucor wanted to build a blast furnace in La. to produce pig for all their EAF’s. Beast could turn into a pig producer.

  • harleyman

     Looks like he beat you to it.

  • harleyman

    Walter, you must be a supervisor. You show up for the “atta boys” and disappear for the : “oh Sh**s”!

    • Bry465

      that’s two things he has in common  with george..as you noticed you haven’t heard from george in awhile have you.

  • glsever

    I like the futuristic update from “Friday 7am”.  I knew the Brew did thorough investigations but time travelling for the story really is a step above the rest.

    • baltimorebrew

      From Brew: the days pass by too quickly. Will correct this typo. Thanks. -MR

  • Crappy Beer

    Say bye bye to the union if Nucor buys!

    • 1190

      what union?

    • Union my toosh

      YEA!!!!!

    • holdout

      what union! you mean the what”s in it for me now boys

  • Reality

    Been laid off since 2009 under Severstal. I have never been in a union (was never a choice given to me), and if Nucor buys I AM READY TO APPLY AND GO BACK TO WORK!!

    • 1190

      where did you work,the steubenville plant. and you was not union. have to apply. whats up with this?

      • Reality

         I was a front line management person at Yorkville.

        • 1190

          ok, hope we all get to go back to work.

  • Walter

    MISSION ACCOMPLISHED!!! Thank all of you for your kind words and e-mails, I have been overwhelmed by the cards and flowers!  No hard feelings for those of you who thought that SP was going to be shuttered and scrapped. This is a time for healing and celebration, as soon our big Beast of the East will be back to work, along with the BOF, Casters, Railroad, Ore Pier, Air Products, DTE, the Pigging Operation, Sintering plant, and all of our other outstanding rolling and finishing operations – the list is so large- forgive me if I omitted your department!
    The real thanks goes to your Leadership, who worked quietly behind the scene to save iron & steel making at Sparrows Point and for America!   “MISSION ACCOMPLISHED” is the big banner I am thinking of hanging from the big star on top of the mighty L Furnace!And we need to thank Mark Reutter for allowing the investors to get the other side of the story, so that they could make the informed call to take the chance on investing heavily in SP – in spite of these lean and uncertain economic times. Mark also opened a window on industry’s view of the situation.Even George is jumping up and down because the rumor mill says that the new owner would welcome back many of the experienced and knowledgeable folks to join the transition team. George is even taking Rumba & Tango lessons to get on the good side of our new Brazilian team members! 

    The only losers are the competition, the greedy Port of Baltimore people, and the Save the Bay Tree-huggers.  Everyone else is back on easy street!!!  

    MISSION ACCOMPLISHED!!!!!!

    Dr. Walter     Phd. BS

    • HAHA

      It aint over yet oh Walter, If Nucor said what they said, do you think anybody else in their right mind said anything different? I oubt it.
      And your union idiots in charge will screw it up again just like voting for RG.

  • Sparrows Hater

    Mark got this leaked info from RG management team who are busy trying to earn their $20 million bonuses.  Bids are private.  I am still a skeptic and see through RG just trying to create buzz.  Remember RG management gets more $$ if the mills are sold as a “going concern”.

    I do believe a bunch of bids came in but we still need to find out about the quality of the bids.  Re: Nucor, Dan DiMicco was asked about acquiring SP on an earnings call when Severstal had the mill up for sale and he laughed and said there are so many problems there, no way!  I agree with the comment below that Nucor wants to make pig.  Nucor is struggling in Louisiana with their air permit.  SP does have an air permit.  The rest of the hot end and finishing end can say goodbye!

    Keep up Mark the timely reporting, but don’t let RG suck you in hook, line and sinker!

  • pointworker

    I think CSN wants the mill the most. After all, they spend 2 weeks here going over all the departments and numbers.

    • Walter

      Pointworker we are on the same track, we know that they were at the Point and they really were impressed. A nice agreeable group of engineers and management types. Just as Dr. Boothe says, the Brazilians have all the captive ore supply the L Furnace could ever ask for. SP is a wonderful location to receive ore and then ship out finished product down to South America. The South Americans still use a lot of canned items, so we do not even need the pain in the neck Campbell Soup Can contract. The only news we are getting certainly is good news for Sparrows Point. And remember that it is in the best interest of our Bonus Boys to keep SP a healthy integrated steel mill, they get a bigger bonus and we get an integrated steel mill. How can anyone find fault with this positive picture?  The news leaks just get better with each passing day! 

  • Dr. Raymond Boothe

    If Nucor is truly interested in SP, it is basically for pigging iron. They are having problems in Louisanna and this purchase would instantly solve the issue. SP could supply iron units for all of Nucor’s operations, but again you have to tack on a hefty transportation cost because Nucor’s plants are so spread out.

    As I said before, we have to get speculation under control and wait until Monday. Then we will get a better picture of this. Do not join the Walter bandwagon until all four wheels are put on. Like Sparrows Hater says “the bids are private.”

    I really do not trust information from the company. It is not from Betty “Duct Tape.” They must have done something to her. A murder investigation might be in order.

    • Hot Metal Guru ( Jack Rose )

       Hey Doc, didn’t Keith Busse who started SDI or Steel Dynamics have a hand in Nucor at it’s inception ?

    • Walter

      Dr. Boothe, Nucor can keep the transportation of pig iron low because it can go out the door via CSX, Southern Norfolk, Interstate trucking, and by barge or ocean going steamship. I do like the idea of running the Beast 100% to make pig, I do not like cutting out the BOF and the Point’s finishing side. You have reminded us that the L is so large that she can more than supply finishing operations and have plenty of pig left to sell off. So, in the event Nucor buys the Point, I am all for running the L 100%, supplying their pigging needs and still making steel to feed the the Point’s finishing lines.  This is a workable solution and will keep the primary side as busy as an one-armed paperhanger!  But this could just be a mute topic as CSN looks like they have the best package to offer and they will keep all departments running full tilt. 

      As to Betty Duct Tape, I think that she dyed her hair an orange-red color and ran off with her boyfriend who has the same color hair. Now we know why her boy friend is not talking, Betty is a good teacher! One less Joker around 21219! 

  • Fordtrkfan

    The last time I saw a “Mission Accomplished” Banner, it was a huge mistake. I would be very careful putting up any banners right now Walter. Just because a few companies placed interest documents in doesn’t mean they are going to buy. It is much easier for them to put down and lose the 2% right now then to buy it and lose Hunders of millions at a later date. I am sure that much paper work is still being looked at for sure. The numbers still have to work out for the company ,especially in this crazy steel market. Steel Companies all over the globe are suffering and losing Hundreds of Millions if not billions.  Flooding the market with strip steel has already been done by China.

    Still waiting on the ”Stalking Horse Bidder” to be announced.   

  • Slim Shady

    …..Looking for a good outcome from this. God be with us..

    • 1190union

      that was him that gave a speach 4 years ago to wpsc union members, he said dont buy a car, hell, you can buy a house ,no im sorry that was one of the boob brothers, 1190 believed him though. remember!

      • Hot Metal Guru ( Jack Rose )

         I remember Gold Chain Hair Head saying that all too well.” Your futures are secure with us O’ steel sheep of the Ohio Valley”.” Myself, (Goldchain) and my well placed team of seasoned industry veterans will lead all of you to the financial promised land” ” Just follow our lead and before you know it the rewards of your toils shall soon be realized by all of us! ” Buy cars, buy houses, worry not for the saviours of steel ( Assmark) are now here ” And then everybody awakend from the effects of the koolaid provided before the Assmark peprally and we have been on the street ever since ! Yessir, old Gold Chain, hair helmet Goodwin has made a career out of hosing steelworkers and destroying steel mills most of his adult life ! Perhaps somebody will see fit to include that particular statement on his epitaph.

  • Pointworker

    I agree that we need to see what happens early next week but this is the best positive news we have had in a year!

  • TastyOre

    I hear on good authority that Assmark is out.  Pulled their bid.   They’ve been sniffing around WCC for a year now.  My only explanation is that their financing fell through. 

    The trustee wants real cash and neither smoke nor mirrors.

    • Roseelectric

      Good, those jackasses should have never been in serious contention anyway ! They are amateur clown shoes that started this whole debacle by swindling Dime bag and the USW four years ago ! And by the way, I really like the Assmark moniker! It fits perfectly!

    • 1190union

      no, the boob brothers made millions of of wpsc with help from the union, and they can                    do           it           all             over            again.

    • 1190

      if they fooled the uswa they can fool anyone! CANT THEY!

  • Fire and Metal

    Aw man was today the deadline to file to buy Sparrows Point, I thought I had until Friday!!

    • Ira

      you do ill extend it! just need 1.00 down.

  • Dr. Raymond Boothe

    Sparrows Hater could be correct in the fact that all these companies that are supposedly bidding on Sparrows Point could be nothing but a ruse. If they can continue SP as a going concern then these rich cats can receive more cash when it is all over. I really doubt that Nucor, a company built on electric furnaces, would be interested in operating SP. After all, they did a long research project before they started the Louisianna Project, and I am sure they were granted all the proper environmental permits. They would loose millions of dollars if they abandoned the project. If they did, they would be successful to manufacture pig iron and scrap the rest of the SP to feed their electric furnaces.

    If I was picking a buyer from this group I would still go with CSN, just because of their ore reserves, their steelmakers, their experience in marketing and their ability to make critical decisions. They have also openly declared their desire for a plant in North America to provide coils for their NA operations and their markets in South America. But there is no absolute certainty that this will happen. As you know logic escapes many situations and you have to be ready for anything.

    Finally there is the USW and I would be leary of any contract. The USW has to make a
    livable contract with them. This would be the second time CSN has been involved with the USW since their problems with WPSC, and that did not go well at all. Expect these negotiations to be very difficult and not anything that the workers at SP have ever dealt with. Ask the workers at Arcelor Mittal right now. For sure it will involve a reduction in force, salary and benefits.

    I really do believe that the Optima Fund/Metinvest Group is the least of the groups. They tried once before but were rebuffed by the USW. Although involved in mining, these Ukrainian hedgefunds are not steelmakers or development planners. They want their foot in the door in the US for financial and political reasons like Severstal. Remember Severstal?

    • 1190

      well you can count on uswa giving in to whoever, the question is will the uswa pick a winner, remember there 0-3. very doubtful!

  • Metalsanalyst

    Raymond,

    The Optima boys are an odd bunch.  The majority of their mill equipment they own over here is a menagerie of oddly fitting, integrated-with-nothing, commercially questionalble stuff.

    I’ve never figured out what their angle is.  Like I said a very odd bunch.  If they somehow took over any of the RG facilites, take a look at the old Copperweld plant in Warren (which they own but you’d never know it, all the Copperweld signage from 1999 is still up) and you’ll see the future.

    I wouldn’t compare them to Severstal, because Severstal has a fairly organized approach.  Optima is basically two guys in yarmulkas buying junk.

  • Mickey 111

    dont  you understand  the  the  land  is  worth  more  then  the  stteel  mill…a  buyer  will scrap  the  plane  and  redelopment  the  land….for  sure….for   sure

  • Dr. Raymond Boothe

    The plant we are talking about is Warren Steel Holdings. It operates one 150 ton Fuchs computer controlled EAF. It also operates a fairly new vacuum tank degasser and a continuous caster. Its main product is continuously cast carbon and alloy rounds. Total capacity is near 500,000 tons.

    Warren Steel Holdings is located near Champion at 4000 Mahoning Avenue, Warren, Ohio. 

    • Jaeulat

      Also…Ohio Star Forge is in the back of Warren Steel Holdings.  There is also a new scrap business in the front of where WSH is.  The old Copperweld property is split between Champion and Warren Townships.  Warren Steel Holdings seems to be doing well.

  • 2XLoser

    Doc – You are right,.. running SP would be out of Warren Holdings league.  Right again about comparing them to Severstal……  Warren Holdings (at the Champion plant) has a strong order book, hiring people and making money. Worked there when CSC (15yrs) brought up the new melt shop.  I now have 12 yrs at Severstal Warren, if they buy us, maybe i can bridge my retirements…. LOL

    • Steelanalyzer

      2xLoser,

      I STRONGLY doubt that Warren Holdings is making money, and especially in this market.  The only componies those guys have that have a chance of being profitable are Niagara LaSalle and Michigan Seamless.

      • 2XLoser

        I based my assumption of their profitability on the fact that current incentive for hourly workers is about 50% of their hourly wage. Production working 7-12′s. Of course this information is from my not always reliable brother-in-law who works there.

  • Dr. Raymond Boothe

    There are a few decent options for the Wheeling Plants. But remember that we won’t know anything for sure until Monday. Even the most logical of steel plant thinkers do not see anything in the crystal ball.

    Do not be overcome about all of these proposals. Some of these things do not seem right at all. Especially in a world wide steel community were even the best plants are losing money.

    • 2XLoser

      Doc,  Even though I joked about Optima combining Warren Steel Holdings and Severstal Warren, there are some logistic possibilities. The plants are only 2-3 miles apart (rail service between the two?) A major production limitation at Severstal Warren has been downstream bottlenecks at the BOF and caster. Seemed like every time the furnace at Severstal Warren settled into a “Balls to the Wall” mode, we would have to pull the wind because of downstream problems.  If Severstal Warren had pigging capabilities, it could efficiently supply both plants 

      • newsflash

        can you imagine! headlines will read-BOOB BROTHERS REEL IN USWA FOR SECOND TIME! LMFAO

    • RAVENS 55

      LOTS AND  LOTS  AND LOTS OF JOB  CUTS COMING  AND BIG PAY CUTS AND BIG BIG BENFITS CUTS  AND THEN OUR P O S UNION WILL MAKE US PAY MORE  SORRY BUT THIS IS WHAT IS GOING TO HAPPEN YOU WILL SEE !!!

      • Bry465

        i want you to think of dave mccall just like alstate insurance.your in good hands.

        • RAVENS 55

          HAHAHAHA THATS CLASSIC  LMAO

  • guest123

    Does that include the other half of MSC????????

  • appalledinohio

    I will not believe any of this til my phone rings with a return to work call.

    • Sparrows Hater

      Most intelligent and practical post yet.

  • wciheycraneman

    In the spirit of the Olympics, guessing what will come next may be fun sport for some.  But, when a person has gone through as much as all of us have, time and time again, over the years, I prefer to wait until Monday to see who the bidders are.  After that, I will wait some more to see just what comes from that.  Bidding doesn’t necessarily mean operating.  In our case, if there is a buyer, will he make the infusions of money needed to run our mill properly?  What operations does he intend to run?  Will he honor our contract?  I am just as hopeful as the next guy, but I am also just as skeptical.  This is going to be a longer process than a couple days.  Through this upcoming time remember one thing: all we truly have is each other.  “SOLIDARITY WORKS “

  • H S

    I doubt that the management of the USWA will trade plant ownership for a couple of no show jobs for their family members, again.

  • RRS

    I hope they get it straight, I enjoyed working there, despite any negative comments I,ve heard ’bout the place from others, I really enjoyed working there more than anywhere else, If you,re a good worker and don,t screw around, they look out for you, especially the company I worked for when I was there, I look very much forward to the day when I get the call to return to work,

  • fed up

    We are all waiting to learn our fate Alot of us are going to loose everything!!!!

  • fed up

    What is happening with the Mingo Plant Why is is taking so long to make a announcement

    • newsflash

      no bidders

  • fed up

    I feel the same way our families are  waiting our fate!!!!!!!

  • Dr. Raymond Boothe

    Walter-I think the angle for Nucor would be for pigging iron and not really producing sheet steel. L furnace would be excellent for that. Nucor has a number of sheet producing plants that can produce sheet at much lower prices. If I was Nucor I would seriously consider running L furnace for pig iron and possibly the cold mill with material from Nucor’s other plants. The remaining equipment then could be sold and the buildings could be scrapped for Nucor’s other plants. Remember this is only a thought based on the needs of Nucor.

  • Steel Engineer

    If the USWA and the workers at Sparrows Point have half a brain they will tell Nucor to go pound sand.  

    #1  Nucor’s Louisiana plant was originally supposed to be two large blast furnaces with coke ovens.  They changed the plans from blast furnaces to direct reduced iron.  Why? Because DRI is cleaner to produce than pig iron.  Also, Nucor could lock in a long term, low cost natural gas contact with all the fracking going on.  Direct reduced iron uses natural gas not coke. Here’s another reason.  EAF steel producers like using DRI because it produces a foaming slags in the furnace which reduces flicker.   DRI also increases yield by reducing the amount of iron oxide in the slag.  DRI produced using the HYL process can match the carbon content of pig iron.   What benefits are there to using pig iron over high carbon DRI?  None!  If Nucor was interested in running a blast furnace why did they change their plans in Louisiana?  Nucor will not run the blast furnance at Sparrows Point.

    #2  I would like to see in writing that Nucor intents to operate Sparrows Point.  Nucor bought American Iron Reduction and moved it to Trinadad where it operates to this day.  I was told Nucor played a part in Gulf States Steel’s equipment being shipped overseas so no one could turn their hot mill into another Duferco. 

    #3  Nucor is strongly anti-union.  I remember reading the following on their web page “We build facilities in states that are conducive to our policy of remaining nonunion”.  Why would any union supporter want a company like Nucor to buy them?  Why don’t you vote for Mitt Romney while your at it.

    There would be nothing good coming from Nucor buying Sparrows Point.  Hope and pray that sugar daddy CSN works out.     

    • Dr. Raymond Boothe

      Resonably there is only 1 possible bidder for SP that could possibly operate it, and that would be CSN. I think the other names are just being thrown out to the public just to help Ira and his criminals to get a part of that extra jackpot. Steel Engineer is correct. After he brought up the reasons for Nucor’s switch over in Louisana, I agree it cannot be for the blast furnace, making steel or running the cold mill. They just might be just interested in SP as a scrap source. The Russians are just trying to pick up an American mill on the cheap.

      • OxygenMaskedMan

        Dr. Ray, out of the three, CSN, Nucor, and the Russian bidder, which one would be the best bet to operate Sparrows Point with the least environmental toxic impact to the air and Chesapeake Bay watershed?  It is a proud fact in Baltimore County that Sparrows Point has always had the wink & nod from the political elite to look the other way and defer environmental stewardship. We know that one of the key selling points is this special arrangement to look the other way down in 21219. Emit unregulated toxins into the Air and Chesapeake Bay to save the robber baron’s money – damn the steelworkers and little children in 21219 & 21222.
        Turners Station and Dundalk are the Cancer Capitals of the USA and thanks to the support of the local politicians, its #1 spot will continue unchallenged!One set of laws for 21219 and another more prudent set of environmental laws for the rest of the state and nation. God help the residents of Turners Station, Dundalk, and Lodge Forrest if this is (the lack of environmental controls) the main selling point of Sparrows Point, while other newer and cleaner mills sit worldwide without suitors because they do not enjoy the EPA-free playing field Sparrows Point enjoys.  

        Dr. Ray it looks like everyone is being poisoned in one way or another at what 
        what you so accurately coined SORROWS Point.  God help all of us, this nightmare called SORROWS Point never ends. You are correct, the  place is truly cursed and evil and only brings pain to everyone but the greed-filled steel barons.

        • Saveamericanjobs

          I’m not a steelworker but I live in the area. I happen to enjoy the (not so) “toxic air” around the mill. To me it smells like progress and hardworking American industry. Most of the people complaining seem to be the yuppie type who would rather have all our manufacturing in China or Vietnam. They don’t give a @#$@ about the suffering caused by de-industrialization. All you have to do is drive through East Baltimore to see what that does to a community. No thanks, I’d rather have my steel made right here in Maryland. The smell is just a bonus. 

          • Walter

            Thank you Saveamericanjobs, we promise to fill all the air with the sweet smell of Kish and hopefully Coke Oven Gases, so all of the Yuppies and Treehuggers can smell hardworking American industry at its best. Let all the crackpots move out to Ruxton or Lutherville and leave us be!  Kish on the car windshield is like gold dust in the bank and soon the Beast of the East will be huffing and puffing again. So happy to see that most of the folks living in 21219 & 21222 enjoy their air seasoned with a little bit of American Industrial Might!

    • Reality

       WOW. Your words are exactly why the Union has gotten it wrong several times in the last several years.

      Isn’t CSN the company that management suggested to buy Whg-Pitt when it was called Esmark…..and the union shot it down??

      • banjo

         CSN was interested in Wgh-Pitt when it was still Wgh-Pitt. Looking back, they would have been the best, but the USW favored Esmark, and its been downhill since for the Steubenville plant.

    • 1190

      you kidding me! sp union is chicken shit , they already proved that.

  • amused observer

    Bids set the floor, but there will still be an auction, either July 31 with no stalking horse or August 21 with a stocking horse. All those who have been outbid can still participate in the auction. 

  • guest123

    Sverstal will take over 100% of MSC …. so the old block will remain down????

  • Happy Man

    CSN:
    1)Reduction in work force
    2)Everyone starts at new employee pay rate(10.00 to 12.00 $ an hr.)
    3)Hugh reduction inhealth care, and no dental or vision
    4)No contribution toward pensions……………………………….
    But on the bright side they will run it full out,and work you till you drop
    NUCOR:
    1)Will only run the blast furnce,no BOF or Caster
    2)May run the Cold Mill,close the rest of the finnishing side, use it for scrap
    3)No UNION
    4)No health care
    5)No pensions
    But good pay for the few
    RUSSIANS:
    1)Reduction in pay
    2)Reduction in health care
    3)Will run at a reduced rate,and ship in slabs( A.K.A. Seversthal)
    4)Shutdown finishing side except for Cold Mill
    5)Be gone in a couple years,same as see above……………..Whoever buys SP…..Good luck to all the guys that return,your going to need it

    • newsflash

      NO UNION! O NO YOU MEAN JUST LIKE NOW!

    • TACO

      Happy Man you summed it up and this is what we are going to have to live with. Looks more like Russian roulette, the Point has no other choices and we are all going to have to live with one of the options you listed because this is all that is offered to keep Sparrows alive. Sure beats having Sparrows scrapped, at least all options will keep the L working. You never want to let your Blast Furnace go cold so any deal is better than no deal. Anybody have any better ideas?

    • RussianFan

      Happy Man…

      “Russians”

      1) RG Steal signs still prominent 13 years from now
      2) No-name, do-nothing managers and revolving door of same
      3) Minimal to no capital spending
      4) No perceptable marketing plan
      5) No public relations whatsoever
      6) No integration with other companies
      7) Equipment hardly ever running
      8) People wondering “what the heck are they doing over there?”
      9) No R&D
      10) Very weird sales channels and raw material supply

      • Walter

        RussinaFan, they do business their way, but the fat paychecks they bring to American workers makes it easy to just go with the flow. Equipment hardly ever running means we have more time to relax and take a little extra coffee break. We need to think like the Europeans and not be so uptight. The South Americans are laid back too, so let’s not question them and just be thankful they have come up with the money to fire up the Point.

        RussianFan, you are very clever and smart and have spent much time around these Russian operators, you have them pegged to a tee, very good post!

        Dr. Walter   Phd. BS

  • TACO

    Bry465 its Walter all right. Notice George picking pockets while everyone is looking at the camera? Pitiful that the new management has invited them to join the” transition” team. Same old BS, nothing changes except George repainting the names on the entrance signs. Let’s see, Beth Steal, ISG Steal, Mittal Steal, SeverSteal, RG Steal, CSN,  NUCOR, or Russian #2 Steal?  At least he only needs to repaint the new name and does not need to repaint STEAL.  The money saved can be used for more bonus handouts, same old BS!

    • newsflash

      steal! are you a union rep?LMFAO!

      • TACO

        The high rollers are walking away with millions and the union locals are getting the shaft. The economy is really bad everywhere but the Wall Street players are making millions out of our misery and junkyard steel plants. SP is a shithouse but they keep milking millions out of it while they rub our noses in the dirt. Getting fed up with being treated like a third class or lower SOB. Maybe we should all walk out and go over to the Port and get a job with some future and RESPECT! Never met a Longshoreman that bitched as much as steelworkers do.
        Steelworkers are always depressed (I wonder why?) and the Port worker Longshoremen are always is a good mood. Time to bail out gentlemen and let the foreigners have the entire Sparrows Point craphole. 

  • SteelDude

    The “Russian Bidder” is not Russian.  They’re Ukrainian.

    • Antaglio69

      Russian is the same thing as Ukrainian just like Croation is the same thing as Serbian.

      • Dr. Raymond Boothe

        The Ukrainian Company operates much different than traditional Russian Companies. But I really don’t think the Ukrainians will not have that much influence on the sale.

  • Steubenville 1190

    Where you at Doc Boothe , I figured your sources would know for sure who bid on Mingo and coke plant . What say you . If you hear before tomorrow , please let us know . If the brew hears about all bids or plants please let us know .

    • Dr. Raymond Boothe

      As of this evening it looks like SDI and Park Industries for all of RG Wheeling and most likely Esmark for a partial bid on WCC. Severstal for all of MSC.

      However, If I had to bet money I feel Park Industries has the inside track on RG Wheeling as a whole, with Park buying out MSC’s portion of Severstal Follansbee.

  • Steelworker

    lets look at reality, sp, war will work at some time soon, mingo. ykv, mf, bb, not all will survive, other companies may be interested in the production lines to move to another site,so be it, you have to save as many jobs as you can at the big operations, thers is just so many life boats. half a loaf is better than none.

    • yiayia

      excuse me but you sound like your all for yourself, otherwords a f n scab!

  • Fordtrkfan

    I will be impatiently awaiting some sort of announcement today in stalking horse bidders. If there isnt one, I guess its off to auction we go. This could really be one of the longest days I have had in a very long time.

  • harleyman
    • Hot Metal Guru ( Jack Rose )

       Good luck with that Babs ! I said the same thing publicly a month ago on the Brew and I am still waiting for my response ???? See, the thing here is that Babs is appealing to the notion that somewhere inside of these corporate destructionists there is a beating heart, or perhaps a soul, or maybe even a conscience riding on a slight touch of integrity that can empathize with the working people whose lives they have destroyed. Unfortunately, no such redeeming qualities exist within these pilfering pudwhackers ! They are motivated by one thing and one thing only. And that is to max out the amount of money they can put in their bank accounts from this predetermined dog and pony show known as Rennert Group Steel.They take their cues and marching orders from Rennert.You haven’t heard him protesting the payment of 20 mil to any of them, have you? You won’t either. That is because it is all one big setup. How about the USW, the voice of the working man?? We can’t even get an honorable mention in their quarterly rag ! For the most part, every individual involved in this show is going to get a decent cut except for the ones who actually did the work ! Not unlike another currently prominent outsourcing pioneer and corporate destructionist known as Willard Mittens Romney.

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