RG Steel Update: Rumors Flying
There are rumors swirling of a cash infusion into RG Steel which could restart the "L" blast furnace at Sparrows Point. The steel making end of Sparrows Point has been in hot idle since December 23rd.
According to Steel Market Update sources, the primary or steel making end of RG Steel Sparrows Point is not operating this week and neither is the hot strip mill. Other finishing operations – i.e. the cold mill, hot-dipped galvanizing/Galvalume line and tin mill are reportedly operating.
The Baltimore Brew recently noted in an article that ore was unloaded at the Sparrows Point facility and this could be a good sign for the future of the mill. Our sources advised us to be patient as ore can be shipped from Sparrows Point to Warren by rail if need be.
Today (Monday) there is a strong rumor in the marketplace of a financial company taking a position in RG Steel which may result in the return of Sparrows Point to full operation. We are hearing reports of RG Steel customers being contacted by Cerberus Capital Management which already has investments in such companies as Blue Bird Bus, North American Bus and Tower International. You can learn more about Cerberus Capital on their website: www.cerberuscapital.com
RG Steel customers have advised Steel Market Update that their sales people are stating there is some truth to the rumor and advising customers they could receive a phone call from Cerberus Capital in order to gauge their level of commitment to the mill.
Steel Market Update has requested information from both Cerberus Capital and RG Steel and at this point we do NOT have confirmation and must consider this to still be a rumor. We will report on any announcement as it is made.