US-based private investment holding company Renco Group has announced that, following the acquisition of three steel companies currently owned by Russian steelmaker Severstal estimated at $1.2 billion, its newly-formed subsidiary RG Steel will become the fourth-largest flat rolled steel producer in the US.
Accordingly, in addition to Severstal's Sparrows Point, Warren and Wheeling facilities, RG Steel will acquire a 50 percent ownership interest in Mountain State Carbon LLC, a cokemaking facility in Follansbee, West Virginia, and Ohio Coatings Company, based in Yorkville, Ohio. RG Steel will receive one half of the coke output from Mountain State Carbon and will continue its long-standing relationship with Ohio Coatings Company. The purchase of these assets will provide RG Steel with approximately 7.5 million mt of annualized steelmaking capacity.
"The formation of RG Steel will create a dynamic, service-oriented company with strategically located facilities," Renco Group's president Ari Rennert stated.
RG Steel will be headquartered at Sparrows Point, Maryland. Completion of the sale is expected in March 2011, pending regulatory approval.