Sunoco commences separation of SunCoke following ArcelorMittal lawsuit

Wednesday, 02 February 2011 02:48:06 (GMT+2)

Philadelphia, Pennsylvania-based transportation fuel provider Sunoco, Inc. announced Monday that it has reached an agreement with ArcelorMittal resolving the lawsuit concerning coke pricing for the Jewell facility in Vansant, Virginia, and will subsequently move forward with the planned separation of SunCoke Energy, its metallurgical-grade coke manufacturing subsidiary.
The settlement agreement between Sunoco and ArcelorMittal stipulates the renegotiation of the Jewell coke contract-pricing of Jewell coal will instead be based upon the coal price at Suncoke's Haverhill, Ohio plant. Terms of the agreement also include a renegotiation and increase in fees paid under the Haverhill agreement, and a take-or-pay basis of the Jewell and Haverhill agreements with ArcelorMittal have been extended through 2020.
"The settlement is an important step in resolving a dispute with our largest customer. We continue to prepare SunCoke for successful operation as a stand-alone entity. We recently purchased coal assets contiguous to our Jewell operations, finalized our headquarters location in suburban Chicago, and began hiring additional key leadership," said Frederick A. "Fritz" Henderson, who will serve as chairman and chief executive of SunCoke Energy upon its separation from Sunoco.
Tags: raw mat , USA , North America , steelmaking , M&A , ArcelorMittal(sourced:steelorbis)