Esmark Acquires Yorkville and Ohio Coatings Facilities
The Sewickley-based Esmark will Invest more than $15 million in working capital to restart the Yorkville facility in January 2013.
Sewickley-based Esmark, Inc. and its wholly owned steel services subsidiary, Esmark Steel Group, has purchased the Yorkville, Ohio cold-rolled finishing and mill and 50 percent interest in Ohio Coatings Company’s tin plate production facility.
Esmark expects the two acquisitions to accomplish its goal of achieving and returning the locally based company to $1 billion in revenue in 2013, enhance shareholder value and complement its leadership position in the U.S. cold-rolled marketplace.
James P. Bouchard, Esmark founder, chairman and chief executive officer, said the company plans to invest more than $15 million in working capital for steel purchases and supplies to restart the Yorkville facility in January 2013.
The company will be renamed Ohio Cold Rolling Company, and majority owned and operated by Esmark Steel Group. Ohio Coatings Co. will become a 50-50 joint venture between Esmark and South Korea’s TCC Steel.
Bouchard recognized the collaboration between Esmark Steel Group, TCC Steel, the United Steelworkers of America and the State of Ohio in reaching an agreement to close the transaction.
Esmark has agreed to terms for a new collective bargaining agreement at Yorkville with the United Steelworkers of America. The expectation is to initially recall about 160 union workers as the Yorkville restart operations begin in January, with the hope of adding more workers as monthly volume increases.
James Ledgard, former chief operating officer of Wheeling Pittsburgh Steel Corporation, was named chief executive officer of the newly-named Ohio Cold Rolling Company. James Tennant, current chief executive officer of Ohio Coatings Company, will remain in his same capacity with the company.
Esmark has about 130 employees and is currently constructing a new headquarters, with plans to move into the Edgeworth site next year.
For more information visit www.esmark.com.