Severstal Sells Sparrows Point

Add to my favorite

2010-11-05

U.S. Sparrows Point (affiliated to Russian Severstal Group) has planned to close its Baltimore-based facility and issued Worker and Retraining Notice (WARN) to all employees, meaning the mill will be shut down for a long period. Severstal stated this act resulted from the weak economy causing the drop of orders. Approximately 1,000-1,2000 employees will be influenced. Severstal has been progressively selling the assets of its Baltimore-based mill, including tens of thousands of tons iron ore. It has also placed Sparrows Point and other two U.S. mills for sale. Bidding submission has been closed on Oct. 22. It is understood that the potential buyers are a holding company- the Renco Group and an Indian steelmaker- Essar.