A New York-based group is seriously mulling investing hundreds of millions of dollars to restart the former McLouth Steel Co. in Trenton, Mich.

The potential project would involve installing an electric-arc furnace on the site to produce hot-rolled coil, according to the owner of the idled mill as well as Trenton's mayor.

Citing confidentiality agreements, both men declined to name the group backing the project or discuss specific details like capacity or exact cost.

The project wouldn't target the automobile industry, according to Michael Wilkinson, a partner in Detroit Steel Co. and owner of the former McLouth Steel site. And its backers remain interested in restarting the mill even in the wake of the current financial panic and tight credit markets, he said. But that doesn't necessarily mean it will be easy going.

"For anybody to be drawing any conclusions...