NEW YORK Nucor Corp. has
purchased parts of the former RG Steel LLC cold mill complex in
Sparrows Point, Md., and intends to use the equipment for
upgrades and replacement parts at its existing cold mills, a
company executive told AMM.
"We acquired pieces of equipment
to enhance existing operations at our four cold mills," Nucor
president and chief operating officer John Ferriola said.
The Charlotte, N.C.-based
steelmaker had purchased parts of the facilityincluding
the pickler, tandem mill and parts of the annealing
furnacesto be used as spare equipment, but didnt
purchase the land or the complex itself, Ferriola told
AMM late Wednesday.
Various market sources have said
the cold mill was one of the most attractive assets at the
Sparrows Point complex, which also includes a blast furnace and
a tin mill, among other assets.
Over the past 15 years, former
Sparrows Point owners have spent a combined $1.064 billion in
capital improvement projects, Hilco said in its marketing
materials for the entire complex, including a $350-million
investment in a new cold mill.
Nucor bought the select cold
mill equipment for an undisclosed sum from previous owner Hilco
SP LLC, an affiliate of Hilco Industrial LLCs trading
unit. Hilco Trading LLC and Environmental Liability Transfer
Inc. together purchased the entire Sparrows Point complex and
land at a bankruptcy auction for $72.5 million (
amm.com, Aug. 16).
The previous month, Nucor bought
all the equipment from Wheeling Corrugating Co. for $7 million
during an auction for RG Steels Wheeling, W.Va., assets
amm.com, Aug. 1).
The partial Sparrows Point
purchase by Nucor comes just weeks before the entire integrated
facility was scheduled to go to auction, either as a single
steelmaking complex or in piecemeal. In September, auctioneer
Hilco set a bid deadline of Dec. 21 and an auction date of Jan.
amm.com, Sept. 26).
However, that auction has since
been canceled, Hilco said on its website Tuesday. Instead,
Hilco said it plans to sell the remaining Sparrows Point
production assets through a private treaty, or negotiated, sale
Hilco confirmed the auction had
been canceled but declined to comment further or confirm the
An auction for "nonproduction
components," including construction and transportation
equipment, will be held separately on Jan. 23 and 24, the