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American Union Seeks Aid of Severstal
The union at the American Wheeling-Pittsburgh Steel plant want Severstal to buy that company. The union hopes that way to avoid the massive layoffs planned by the current own, Esmark, which bought the plant last November. Severstal was interested in buying troubled Wheeling-Pittsburgh in 2006, according to U.S. press reports. The support of the unions is important for steel plant deals in America.
Severstal recently bought the Sparrows Point smelter in the United States. According to the Associated Press, the Wheeling-Pittsburgh union are negotiating with Severstal North America, which has a joint enterprise, Mountain States Carbon LLC, with Wheeling-Pittsburgh. The union itself denied any knowledge of those negotiations when contacted by Kommersant, and suggested that the Wheeling-Pittsburgh management may be in talks with Severstal North America. Esmark president and vice chairman Craig Bouchard commented that unions “have no right to look for partners.” A Russian metals executive characterized the American steelmakers union as strong and aggressive, but noted that “it is illegal to reach an agreement with them in advance.”
Severstal declined to comment on Wheeling-Pittsburgh. The information would be beneficial if it were attempting to acquire the plant. Analysts note that the recent purchase of Sparrows Point should satisfy its appetite for U.S. assets, and the Wheeling-Pittsburgh, which has not turned a profit in ten years, is not likely to be attractive to it.
www.kommersant.com
All the Article in Russian as of Apr. 04, 2008
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