Slater Steel Inc., a mini mill producer of specialty steel products, has completed the acquisition of substantially all of the assets of the Austeel Lemont Division of Auburn Steel Co. Inc. for USD 7.0 million cash. Austeel’s primary assets include a modern 18-stand continuous bar mill with annual capacity of approximately 500,000 tons, two 40-ton electric arc furnaces and a three-strand caster. Slater Steel will leverage the Austeel in-line bar mill to expand Hamilton Specialty Bar’s product range and to more fully utilize the melt shop at Hamilton, as well as at Atlas Specialty Steels. Slater expects to begin operating the Austeel bar mill in the fourth quarter of 2002. Certain of the assets of the Austeel melt shop will be redeployed to Slater Steel’s steelmaking operations, allowing the company to avoid approximately $10 million in capital expenditures.
The company states that recruitment for the Austeel facility is underway. Effective immediately, Michael Sirbaugh has been appointed Vice President and General Manager of the newly acquired mill. Mr. Sirbaugh brings broad minimill and integrated steelmaking and managerial experience to his new position, including extensive knowledge of the long products and special bar quality (SBQ) markets that Slater competes in.
