Weirton Accepts ISG Offer

International Steel Group Inc. (ISG), Richfield, Ohio, has reportedly made a successful bid for bankrupt Weirton Steel Corp. of Weirton, W. Va.

According to an AP report, Weirton’s board of directors has accepted a $225 million buyout offer from ISG, adding another integrated steel mill complex to ISG’s stable.

Formerly owned by its employees, Weirton Steel has been mired in a cycle of layoffs and bridge loans in recent years.

If the deal is completed, ISG will take possession of Weirton’s tin mill, considered to be one of the largest in the U.S. Under the arrangement, layoffs already announced by Weirton will remain in effect and another 300 layoffs will also be likely, according to the AP report.

ISG’s operating units will now include the mills operated by the former LTV Corp. of Cleveland, as well as those acquired from the former Bethlehem Steel and Acme Metals companies.

In a news release, Weirton Steel CEO D. Leonard Wise referred to the ISG purchase a good outcome for the company, its employees and the community of Weirton. “Our goal has been to secure the best possible solution for all of our stakeholders and to maintain a steel operation in Weirton,” he remarked. “We believe ISG provides the answer.”

Weirton will reportedly file complete details of ISG’s offer with its Bankruptcy Court judge, who will provide a month-long window to accept and consider other bids for Weirton’s assets.