Severstal Wheeling agrees to sell Pennsylvania sheet rolling facility

Severstal Wheeling, Inc., a business unit of Severstal North America, Inc., has signed a letter of intent to sell its Allenport, Pennsylvania sheet rolling plant to North American Trading Company, LLC (NATCO).

The plant includes a pickle line, tandem mill, box anneal facility and temper mill, all critical to the final forming and conditioning of light flat rolled steel products. Cold mill sheet is used by a wide range of consuming industries including automotive, appliance and construction.

The facility operated until May 2008 when it was temporarily idled due to duplicative facilities elsewhere in Severstal North America and Severstal Wheeling.

Under new ownership, the mill is expected to produce stainless-clad sheet steel, the core of NATCO’s business, for appliance, automotive and culinary uses.

The letter of intent calls for Severstal North America to sell all equipment and plant property of about 400 acres to NATCO. The prospective buyer is currently performing due diligence and discussing operating plans with the United Steel Workers to staff the facility with former Severstal Wheeling employees. Pending the execution of a purchase agreement between Severstal North America and NATCO, Severstal North America anticipates completing the sale of Allenport to NATCO in August 2009.