Jul 19 2002
Dofasco has signed a letter of intent to acquire the assets of LTV’s Marion, Ohio automotive tubular manufacturing facility.
LTV filed for Chapter 11, voluntary bankruptcy on December 29, 2000. The acquisition of LTV assets by Dofasco is subject to approval by US Bankruptcy Court. Dofasco must also negotiate a suitable labour agreement before the sale can go ahead.
The cost of the acquisition will not be disclosed, but will be paid to creditors and reflect the current situation. The plant itself was constructed in 1999 for US$52 million.
The acquisition will add another tube mill to an existing three operations, of which two are in Ontario and the other in Mexico. The LTV facility will compliment existing operations and business into which it will become integrated.
The strategically located LTV facility has a capacity of 150,000 tone per year and includes:
- 2 mills (large and small diameter)
- Slitting operations
- Storage facilities
- Materials testing laboratories
- Offices
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