A Russian steelmaker is coming to the rescue of Rouge Steel Co. The planned acquisition by Severstal offered the best chance to keep Rouge afloat and its 2,600 employees on the job.
Rouge Industries Inc. announced that it signed a nonbinding letter of intent to sell its Rouge Steel, QS Steel Inc. and Eveleth Taconite Co. subsidiaries to Severstal, Russia's second-largest steel producer.
Rouge Steel plans to continue manufacturing and shipping steel products during bankruptcy, chairman and chief executive Carl Valdiserri said. "We view this as importing foreign investment instead of exporting American jobs," Mr. Valdiserri said in a statement. "Our business combination will provide a mutually beneficial result."
Annual production for Rouge totals 2.5 million tons, less than one-quarter of Severstal's yearly output of 10.6 million tons. The company makes steel for the construction and appliance industries and specialized products such as lawnmower blades. (AP)
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