Sparrows Point Purchased For $72 Million By Plant Liquidator

Steel mill workers were hoping for an operator, but none show at auction

BETHLEHEM STEEL PLANT AT SPARROWS POINT – NARA – 546808 (Photo credit: Wikipedia)

A liquidation firm won the bidding for Sparrows Point, offering $72 million for the Baltimore County steel mill — less than a tenth of what the complex sold for just four years earlier — and realizing the worst fears of its roughly 2,000 employees.

Mill advocates vowed to push for a miracle to keep steelmaking going there.  The local United Steelworkers union had hoped for a steelmaker would buy and restart the mill — idled after owner RG Steel filed for bankruptcy in May.  But no steelmaking companies showed up to bid at the Tuesday afternoon auction in New York, said Joe Rosel, president of Local 9477 in Locust Point.

The mill’s general manager, Glenn Mikaloff, sent an email to managers late Tuesday that identified Hilco as the winner and the size of its bid.

Read more: http://www.mcall.com/business/bs-bz-sparrows-point-sold-20120808,0,1409767.story

Former Bethlehem Steel Property To Idle

 

BETHLEHEM STEEL PLANT AT SPARROWS POINT – NARA – 546882 (Photo credit: Wikipedia)

The owner of the financially ailing Sparrows Point steel plant is idling operations there, warning 1,975 workers Thursday that they would be laid off starting next month.

The news, which casts doubt on the future of the Baltimore County facility that was once owned by Bethlehem Steel, came as RG Steel is shopping the steel mill and its other assets to potential buyers.

RG Steel informed the Maryland Department of Labor, Licensing and Regulations that layoffs would begin June 4 and continue through June 18. The state said the company would be laying off 1,714 hourly and 261 salaried workers, losses that would be a significant blow to the economy.

For years, the plant has faced uncertainty before last-minute deals salvaged the mill. RG Steel is the latest owner to try to sustain steel production at the once-flourishing facility.

Read more: http://www.mcall.com/business/mc-allentown-sparrows-point-idle-20120525,0,7750660.story