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| April 2008
United Steelworkers approves Severstal acquisition of ArcelorMittal's Sparrows Point Mill Leo W. Gerard, president of the United Steelworkers (USW), confirmed the union’s initial approval of Russia’s Severstal North America Inc. (SNA) acquisition of the Sparrows Point steel mill in Baltimore, Maryland, where the union represents 2,200 steelworkers. “Negotiations with both the seller and the new buyer of the Sparrows Point steel mill are completed,” Gerard said. “The Severstal deal demonstrates the USW and its members are the critical players in the continuing consolidation and revitalization of North America’s steel industry for those who want access to our hemispheric market.” John Cirri, president of USW Local 9477, representing workers at Sparrows Point, wrote an e-mail message to the union members, saying, “The many months of uncertainty on who will be our third new owner are finally over. Severstal North America has agreed to purchase Sparrows Point for $810 million. The protections and provisions provided under the USW collective bargaining agreement with ArcelorMittal remain intact. We believe that the date Severstal officially takes control will be in about 60 days.” ArcelorMittal’s Sparrows Point is being sold by Joseph G. Krauss, Divestiture Trustee, as required by a federal district court to settle a complaint filed by the U.S. Department of Justice after the merger agreement between Mittal Steel and Arcelor SA in 2006. |
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