Esmark Reclaims Stake in Two Former W-P Holdings > Metal Center News

Esmark Reclaims Stake in Two Former W-P Holdings

Oct. 17, 2012

Esmark Reclaims Stake in Two Former W-P Holdings

Esmark Inc. and its wholly owned steel services subsidiary Esmark Steel Group have closed into escrow on the transaction to acquire RG Steel LLC's Yorkville, Ohio, cold-rolled finishing mill and RG Steel's 50 percent interest in Ohio Coatings Co.'s tin plate production facility. The purchases will once again return interest in the properties to Esmark.

Esmark expects the two acquisitions to accomplish its goal of returning the company to $1 billion in revenue in 2013 and to complement its leadership position in the U.S. cold-rolled marketplace.

Chairman and CEO James P. Bouchard says the company plans to invest more than $15 million in working capital for steel purchases and supplies to restart the Yorkville facility in January 2013, and will rename the company Ohio Cold Rolling Co. The newly named facility will be majority owned and operated by Esmark Steel Group. Ohio Coatings Co. will become a 50-50 joint venture between Esmark and South Korea's TCC Steel.

"The imminent closing of this transaction is very welcome news to the Ohio Valley, and we're extremely pleased to be able to revive one of Wheeling Pittsburgh Steel Corp.'s iconic facilities and bring back sorely needed jobs," says Bouchard. "We believe we have a unique opportunity to operate Yorkville and Ohio Coatings Co. as truly independent facilities not tethered to a steel producer, which will allow the two companies to operate more efficiently and better execute their strategies moving forward."

Esmark has been working closely with government officials on an environmental remediation plan for the Yorkville site, and has agreed to terms for a new collective bargaining agreement with the United Steelworkers of America, says Esmark Steel Group CEO Tom Modrowski, who led the company's efforts to acquire the RG Steel assets.

James Ledgard, former chief operating officer of Wheeling-Pittsburgh Steel Corp., has been named CEO of Ohio Cold Rolling Co. James Tennant, current CEO of Ohio Coatings Co., will remain in that capacity.

"We've had excellent working relationships with both Jim Ledgard and Jim Tennant going back to when Esmark owned Wheeling-Pittsburgh Steel, and we're confident they will be dynamic and effective leaders for our companies as we execute our business plans," says Modrowski.