Steel Mills
July 24, 2014
Steel Mill Consolidation - Who's Next?
Written by John Packard
With the announcement of the sale of Russian owned Severstal North America assets to AK Steel (Dearborn, Mountain State Carbon & Joint Ventures) and Steel Dynamics (Columbus) for $2.325 billion, the market is now asking what, or who, is next.
There are two mills that are being mentioned. One, Gallatin Steel, a hot rolled mini-mill located in Kentucky and currently owned by Gerdau Ameristeel. ArcelorMittal (50/50) is already soliciting offers for Gallatin which our sources are advising us are due to the mill by mid-August. The second mill being mentioned, but not officially for sale, is Essar Steel Algoma which recently filed for Chapter 15 protection as they go through the process of restructuring/refinancing their debt obligations of their fully integrated plate, hot rolled and cold mill in Canada.
