International Steel Group (ISG), Cleveland, the partnership that purchased the assets of the former LTV Corp., has announced its acquisition of the former Acme Metals Inc. steel mini-mill in Riverdale, Ill.
According to a report in the Cleveland Plain Dealer, ISG has agreed to pay $65 million for Acme's Riverdale mini-mill, which has been closed since last year. The Acme mill will join the group of former LTV assets in Ohio, Indiana and Illinois purchased by ISG four months ago.
Observers believe the Riverdale mill will supply raw steel to the former LTV finishing mill in Hennepin, Ill., which has been the only former LTV plant not to re-open yet.
ISG Chairman Wilbur Ross Jr. told the Plain Dealer that investors and lenders have been receptive to the way the company has operated, giving them confidence to make the Acme purchase.
He also noted that the Acme assets were purchased at a very reasonable price. "These are facilities that cost something approaching $350 million to build. We're buying them for $65 [million],” he told the newspaper.
The deal will still require the approval of a bankruptcy judge before it is finalized. Like ISG’s other acquired assets, Acme mill workers are represented by the United Steelworkers of America (USWA).
The Plain Dealer has also reported that ISG and the USWA are continuing complex negotiations to hammer out a labor agreement between former LTV employees and the company.
Negotiators on both sides continue to sound optimistic about the negotiations, which started in April, but noted that the negotiating points are numerous, covering pay, benefits and work rules.