FOLLANSBEE, W.Va., Sept. 30 /PRNewswire-FirstCall/ -- Wheeling-Pittsburgh
Steel Corporation and SNA Carbon, LLC, a wholly owned subsidiary of Severstal
North America, Inc. of Dearborn, Michigan, today announced the formation and
funding of a new joint venture, Mountain State Carbon LLC, that now owns
Wheeling-Pittsburgh's coke plant in Follansbee, WV.
Initially, SNA Carbon has contributed $50 million and Wheeling-Pittsburgh
has contributed all of its coke producing and related assets and $10 million
to Mountain State Carbon. SNA Carbon, over the next several months, will
contribute an additional $40 million for a 50 percent share in Mountain State
Carbon. SNA Carbon's total contribution to Mountain State will be $120 million
with the remaining contributions occurring through mid-2006, while Wheeling-
Pittsburgh's total contribution will be $40 million with the remaining
contributions occurring through 2008.
These contributions will be used to rehabilitate the plant's four coke
batteries. Refurbishment of the coke facilities has already commenced and work
on the No. 8 battery is expected to be completed in June 2006. Additional
refurbishment work on the remaining three batteries is expected to continue
through 2009.
Wheeling-Pittsburgh and SNA Carbon will purchase all coke produced by
Mountain State Carbon at cost. Additionally, SNA Carbon has paid $20 million
to Wheeling-Pittsburgh pursuant to a 2005 coke supply agreement.
"Mountain State Carbon was made possible because of our investment in
electric arc furnace technology that reduces our coke requirements by
approximately 50 percent," said James G. Bradley, Chairman and CEO of
Wheeling-Pittsburgh Steel. "Mountain State Carbon will produce all of our
remaining coke requirements, and will provide SNA Carbon with a substantial
portion of its needs."
"The formation of Mountain State Carbon is not only an important step for
Wheeling-Pittsburgh and for SNA Carbon, but it is very meaningful to the State
of West Virginia," Bradley said. "SNA Carbon's cash contribution to Mountain
State Carbon represents a significant investment in West Virginia and enhances
the long-term viability of about 350 manufacturing jobs in the Northern
Panhandle. Creating Mountain State Carbon will permit Wheeling-Pittsburgh to
continue its focus on improving its reliability, quality and service to those
customers who count on us."
Wheeling-Pittsburgh Steel will continue to operate and manage the coke
plant under agreements with Mountain State Carbon, and the coke plant workers
will remain Wheeling-Pittsburgh employees.
"The culmination of this joint venture company is a significant milestone
in our quest to secure a reliable and competitive domestic supply of
metallurgical coke for our steelmaking operations," said Ronald J. Nock,
President and CEO of Severstal North America, Inc. "We look forward to this
important partnership with Wheeling-Pittsburgh Steel Corporation, its
employees and all the stakeholders of Mountain State Carbon."
About Wheeling-Pittsburgh Steel:
Wheeling-Pittsburgh Steel is a steel company engaged in the making,
processing and fabrication of steel and steel products using both integrated
and electric arc furnace technology. The Company's products include hot
rolled and cold rolled sheet and coated products such as galvanized, pre-
painted and tin mill sheet. The Company also produces a variety of steel
products including roll formed corrugated roofing, roof deck, floor deck,
bridgeform and other products used primarily by the construction, highway and
agricultural markets.
About SNA Carbon, LLC and Severstal North America, Inc.
SNA Carbon, LLC is a wholly owned subsidiary of Severstal North America,
Inc., an integrated flat rolled sheet steel producer that primarily serves the
automotive, converter and service center markets in North America. Severstal
North America employs approximately 2,000 employees in its manufacturing
facilities and corporate offices located in Dearborn, Michigan. Severstal
North America is a wholly owned subsidiary of OAO Severstal, Russia's second
largest steelmaker, and an affiliate of Severstal Group, a Russian-based
conglomerate including metallurgy, mining, automobile manufacturing,
machinery, transportation and other businesses.
The Severstal Group employs approximately 150,000 people and operates more
than 30 plants in 14 regions across Russia and the United States. In April
2005, Severstal Group acquired a 62% interest in Lucchini S.p.A., an Italian
based specialty steel manufacturer with 20 industrial plants and 9,000
employees located in Italy, France, Great Britain and Sweden.
Statements in this release that express a belief, expectation or
intention, as well as those which are not historical fact, are forward
looking. They involve a number of risks and uncertainties, which may cause
actual results to differ materially from such forward-looking statements. For
more information about these risks and uncertainties, please refer to
Wheeling-Pittsburgh, Corporation's annual report on Form 10-K for the period
ending [December 31, 2004], and other filings, with the Securities and
Exchange Commission.
SOURCE Wheeling-Pittsburgh Steel Corporation
 back to top
Related links:
http://www.wpsc.com
Company News On-Call:
http://www.prnewswire.com/comp/967451.html
CONTACT:
Jim Kosowski of Wheeling-Pittsburgh Steel
Corporation, +1-304-234-2440; or William Hornberger of SNA
Carbon, LLC, +1-313-323-1850
|
