ISG Completes Acquisition of Acme Metals

With the bankruptcy court's blessing, International Steel Group Inc. on Sept. 23 took over ownership of Acme Metal’s steel operations in Riverdale, Ill. ISG, the private steelmaker owned by investor W.L. Ross, will acquire Acme's assets -- including its strip mill, basic oxygen furnace and caster -- for $65 million.

The company's blast furnace and coke plant are closed and are not included in the sale.

The company says it plans to immediately begin staffing the plant with about 200 salaried and union employees in order to be ready for production of 800,000 tons of hot rolled steel in January.

The company already has reached a tentative agreement with the United Steelworkers of America and has started discussions with the Village of Riverdale, utility companies, the Norfolk Southern Railroad and customers "to facilitate a quick and predictable startup." The relationship between the union and the work force at Acme will be similar to the one at ISG's East Chicago, Cleveland and Hennepin, Ill. plants. But Ross said he expected the hiring process will be easier than with the first time.

A portion of ISG Riverdale's production will be used at the company's Hennepin's cold rolling and galvanizing plant. The added capacity from the "minigrated" mill -- the $400 million casting and rolling complex that combines blast-furnace steelmaking of integrated mills with thin-slab steel production pioneered by minimills which Acme installed in 1997 -- also will allow ISG to broaden its product range and market scope into the marketing of niche premium-priced products, such as mid- to high-carbon steel, alloy steel and high strength/low alloy steel. (Munster, Ind.,) Times