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On Jan. 6, International Steel Group (ISG) submitted a purchase proposal for Bethlehem Steel Corp., which, if accepted, would create North America's largest steelmaker.
Bethlehem Steel officials plan to spend several weeks reviewing the proposal, which marks the end of a 60-day exclusivity period between the companies.
"A combination of Bethlehem and ISG would create a formidable new
competitive player in the steel industry, with 16 million tons of annual shipment capacity," said Bethlehem Steel Chairman and Chief Executive Officer Robert Miller in a prepared statement. "The transaction structure is designed to ensure a seamless continuity of operations for the benefit of
employees, customers and suppliers."
Basic elements of ISG's recent six-year labor agreement with United
Steelworkers of America (USWA) would apply to Bethlehem plants.
Bethlehem Steel officials expect to continue developing an alternative reorganization plan until a combination with ISG is approved by
Bethlehem's board, a creditors committee and federal bankruptcy court.
If the transaction's approved, the new company would control steelmaking operations in Cleveland, Burns Harbor and East Chicago, Ind., and Sparrows Point, Md.; electric furnaces in Coatesville and Steelton, Pa.; and finishing facilities in Ohio, New York, Pennsylvania and Indiana.
ISG also would succeed Bethlehem Steel, which produces steel rail, as the joint venture partner for Bethlehem's interests in Illinois, Indiana, Mississippi and Florida.