International Steel Group (ISG) have reached an agreement with Acme Steel to purchase several of their assets such as the compact strip minimill for $65 million.
ISG are the recently formed company which not so long ago purchased assets from bankrupt LTV Steel and re-opened these facilities.
The purchase of the Acme facility, pending approval from the US Bankruptcy Courts fits well with ISG’s strategies and provides a good fit with the ramp up of their Hennepin cold rolling and galvanising plant. The acquisition also gives ISG the ability to supply higher carbon steel grades including mid to high carbon and HSLA alloys. Such alloys are used in knives, blades and other cutting devices.
Apart from the good strategic fit, ISG are happy with the purchase as the cost to build a similar state of the art plant is estimated at $350 million.
ISG hope to reopen the facility soon and will work with United Steelworkers of America to employ 250 workers.
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