It appears tonight that the last remaining link to the Mahoning Valley's storied history of steel making will soon be owned by the Russians. But no one seems the least bit concerned.It was announced this afternoon that O--A--O Severstal of Moscow has agreed to buy Warren's W-C-I Steel... -- .It's the only integrated mill left in what was --once---appropriately called--- the Steel Valley.
After nearly a century of local ownership...WCI Steel's future is now in the hands of O-A-O Severstal of Moscow.The two companies came to terms this afternoon...the deal is for 1-hundred forty million dollars.United Steelworkers Local 1375 says the sale has been in the works for sometime... so it's no secret to WCI's Eleven-hundred workers. The president says he's pleased with the agreement and says from a union standpoint... he does not expect any job loss.
"IT'S A GREAT COMPANY THAT PURCHASED US. VERY SOUND..COMMITTED TO SUBSTANTIAL AMOUNT OF CAPITAL INTO OUR PLANT. VERY GOOD FOR OUR UNION MEMBERS AND OUR PLANT IN THE FUTURE TO COME."--Ed Machingo
Severstal will also assume over 2-hundred thirty million dollars worth of debt. The deal still needs final approval..that's expected to go through later this summer. Warren's mayor thinks it's a win--win situation for the city and it's workers.
"FOR THE FIRST TIME IN A LONG TIME, SOME GREAT POSITIVE NEWS OF A COMPANY MAKING A PURCHASE AND PLANS OF MAKING A SIZABLE AND CAPITAL INVESTMENT IN THAT VERY SAME COMPANY....HOPEFULLY WILL NOT ONLY SECURE JOBS BUT HOPEFULLY WITH ENOUGH PROFITS WILL HAVE ADDITIONAL JOBS WITH THE SAME CENTURY OLD COMPANY."--Michael O'brien
Management for WCI could not be reached tonight...but this afternoon they released this message.
{"DURING THE PAST FEW MONTHS, THE BOARD OF DIRECTORS HAS CAREFULLY EVALUATED STRATEGIC ALTERNATIVES AND HAS CONCLUDED THAT THE SALE OF WCI STEEL TO SEVERSTAL IS IN THE BEST INTERESTS OF THE SHAREHOLDERS AND WILL ENABLE THE WARREN OHIO FACILITY TO PROSPER IN THE FUTURE...ALL OF US AT WCI STEEL ARE COMMITTED TO WORKING TOWARD A SMOOTH AND RAPID TRANSITION."}
Both sides are expected to meet this coming Wednesday.
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