The purchase of bankrupt LTV Steel has been approved, with WL Ross and Co LLC to acquire the flat rolled products plants at Cleveland, East Chicago and Hennepin as well as a coke plant in Ohio.
The business will be called International Steel Group Inc. (ISG) and was bought at an expense of $127 million. The purchase price included certain assets of LTV Steel as well as unspecified costs associated with environmental liabilities.
With the purchase expected to be finalised by April 15, plans are afoot for production to begin within 8 weeks in a limited capacity. Production capacity will be ramped up in line with market demand. This follows on from the plants being idled in December of last year and a request for Chapter 11 reorganisation by LTV Steel.
Under the new ownership, the company will re-enter the marketplace in a controlled manner, with each plant focussing on its specialities. Each plant will also run autonomously and be responsible for its performance and profitability. Details on recruitment are expected to be available shortly.