The Renco Group’s affiliate, RG Steel has closed the share purchase of three steel companies from Severstal US. With this acquisition, RG Steel now has an annual production capacity of 7.5 million tons of flat-rolled steel.
With this purchase, RG Steel now has integrated steel plants at Wheeling, West Virginia, Warren, Ohio and Sparrows Point, Maryland, and finishing plants in Martins Ferry and Yorkville, Ohio. The company has also acquired the Wheeling Corrugating based in West Virginia and 50% interest in both Ohio Coatings in Yorkville, Ohio, and Mountain State Carbon, a coke producing facility in Follansbee, West Virginia.
The President and Chief Executive Officer at RG Steel, John Goodwin stated that the company is planning to achieve the top position in the production and delivery of flat-rolled steel and to offer better services to its customers. The company would leverage its strengths to become a top-ranking manufacturer of flat-rolled steel in the US market.
Goodwin further said that the company has initiated the activities to resume operations via its hot strip mill in Sparrows Point, Maryland. The company is planning an organized recommencement of operations at the facility. The blast furnace at Sparrows Point facility is expected to begin production in May 2011, Goodwin said.