Steel plans announced
What exactly a newly announced deal between two family-led steel companies will mean for development and operations of two steel mills in Yorkville is not yet clear, but the announcement Monday that Esmark and a Cleveland based steel company state prominently their immediate focal points include plans for interests in Yorkville which the Sewickley-based business bought a few months ago from now defunct RG Steel.
It may well be the initial opportunity for the local arm of Esmark and to unite its steel interests and regional Marcellus development.
The new venture will continue to operate under the “Esmark Technologies” brand,
Initial details of the new venture were announced Monday in a joint release by Esmark Inc. (“Esmark”), Stahlschmidt Incorporated (“Stahlschmidt”) and Bouchard Group, L.L.C. (“Bouchard Group”). The structure of the deal was described as a sale and licensing agreement whereby Stahlschmidt and Bouchard Group have jointly acquired Esmark Technologies from Esmark Inc.
The companies expect that the Ohio region will continue to be of significant importance as Esmark Technologies looks to expand and develop future projects, including a diversified pipe and aggregates depot and ancillary services to support the Marcellus field demand; a possible tin printing venture; and a coal transfer/blending station and/or shale gas co-generation facility on or immediately adjacent to existing Esmark facilities.
The pricetag for the purchase was not announced.
Stahlschmidt will own 60% of the venture and manage operations.
Under Stahlschmidt’s leadership, Esmark Technologies will focus on Project Development, Resource Recovery, Energy Efficiency Solutions, Structured Trade Finance and tailored Supply Chain Management solutions in the North America industrial metals, energy and manufacturing sectors. Esmark Technologies was originally formed to provide technical and management services and commercial support across specific market segments including the steel, manufacturing and industrial sectors. It will be based in Cleveland, Ohio, where Stahlschmidt’s North American operations have been headquartered since 1995.
Esmark also has significant interests in Ohio such as its steel group subsidiary Independent Steel, a steel service center based in Cleveland, Ohio; its Esmark Aviation group subsidiary that provides contract medical flights for The Cleveland Clinic; and its newly acquired cold-rolled finishing mill based in Yorkville, Ohio and a 50 percent interest in Ohio Coatings Co.’s tin plate production facility.
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