July 23, 200717 yr Here is a hold up... heard this from a contractor at SunCoke. Russians want to construct and operate the facility using all non-union labor. The state of Ohio wants the Russians to use all-union labor. In order to receive state funding, the company will need to use all-union labor. But they could just as well move to Indiana, where the state has no such laws. AK Steel did that for their finishing facility, and it is non-union.
July 23, 200717 yr Also see this thread on other Haverhill developments, including one article I posted on the steel mill (didn't see this one at first).
July 24, 200717 yr Surely thats not the $2 billion Investment. A mini mill couldn't cost that much to build especially in a depressed area. I'm thinking its more along the lines of Rolls Royce or perhaps Volkswagen.
July 24, 200717 yr It's a fully integrated mill that uses an electric-arc furnace for steel production. You can't construct pig-iron blast furnaces in the United States anymore due to serious envrionmental regulations. The near $2 billion investment will create between 1,000 to 1,400 employees. At one point, the company was considering AK Steel's Ashland Works, using the land that the former two-mile hot strip sits on (now being demolished), along with other vacant properties on the site. But the Ashland facility is critical to the Middletown facility, and the company did not want to part with any of the land.
July 24, 200717 yr But they could just as well move to Indiana, where the state has no such laws. AK Steel did that for their finishing facility, and it is non-union. Not anymore. They are represented by UAW now, I believe. The AK plant in Rockport represented a $1 billion investment in the mid 90s when it was constructed.
July 24, 200717 yr Ah thanks for the clearification. When did the changeover occur? The AK Steel plant, FTR, is just a finishing facility -- not a fully integrated mill.
July 24, 200717 yr Ah thanks for the clearification. When did the changeover occur? Not sure The AK Steel plant, FTR, is just a finishing facility -- not a fully integrated mill. Not yet anyway...they own plenty of land to do so if that's what they want.
July 24, 200717 yr At one point, the company was considering AK Steel's Ashland Works, using the land that the former two-mile hot strip sits on (now being demolished), along with other vacant properties on the site. But the Ashland facility is critical to the Middletown facility, and the company did not want to part with any of the land. I'm not surprised. Ashland and Middletown are a package deal. I've heard rumblings that AK could be looking to unload them or spin them off to focus more on stainless, which is exactly what ARMCO did when they owned the mills. They created a joint-venture with a Japanese steelmaker. That joint venture lasted a few years before the company was spun off into AK. In 1999, AK bought ARMCO.
July 24, 200717 yr ^ Correct, although ARMCOs later dealings led to their eventual downfall and downsizing. I can't remember who was in negotiations with AK Steel over a possible buy-out, but it wasn't that long ago. The Ashland Works has been making a comeback -- it was on the verge of total closure in the early to mid 1990s, but some investment has been put in the last three years. A blast furnace is being scrapped (Bellfonte), although it hasn't been used since the mid 1990s, as well as the hot-strip. I wish I had photos. I worked in the plant for a few months as an intern and that was as close to hell as I have been.
July 24, 200717 yr Potential development could have broad impact on area By Phyllis Noah/The Ironton Tribune Tuesday, July 24, 2007 10:36 AM CDT If plans are finalized for a new steel mill near SunCoke Energy in Scioto County, the economic impact would likely go well beyond the job creation.
July 24, 200717 yr Nice find. Good call. I find it bizarre that a Russian steel company would want to open a mill here and on top of that not use union workers. My impression on the whole steel industry is that there is a lot of capacity still even though steel mills have shut down because of all the efficiencies of the mini-mills. Perhaps that was the case 5yrs ago. Its too bad they couldn't have this built in a place like Youngstown where there would be plenty of available land and labor. Another positive I guess if this is for auto bodies there will likely be more automotive manufacturing in Ohio than less.
July 24, 200717 yr Mini-mills typically use scrap in electric arc-furnaces, and the quality of steel might not be as great as one created in a pig-iron furnace from scratch. But they are cheaper to the consumer who might use it in residential construction projects, etc. It's not too practical or as durable to use them in highway construction projects, or tall skyscrapers. Big pig-irons have economies of scale, and their quality is superb -- but imports from China's blast furnaces have hurt the industry to the point that only a few remain. One company (I think Russian too?) is building a massive new fully-integrated steel mill in Mobile, AL.
July 27, 200717 yr pd: Steel mill possible for southern Ohio Friday, July 27, 2007 Mark Rollenhagen and Peter Krouse Plain Dealer Reporters The Russian-owned steel mill that state officials are trying to land for Ohio would be built in southern Ohio along the Ohio River.
July 27, 200717 yr Haverhill, between the Jesse Stuart Bridge (SE of Wheelersburg) and Hanging Rock, west of Ironton.
September 7, 200717 yr Steel plant likely for Ohio, Russian exec says Billion-dollar project reportedly awaits final approvals Thursday, September 6, 2007 11:02 AM By Paul Wilson and Mark Niquette THE COLUMBUS DISPATCH A Russian steel company has all but decided on Ohio for a plant valued at more than $1 billion, according to media reports in that country. http://dispatch.com/live/content/business/stories/2007/09/06/russian_steel.html
September 7, 200717 yr Holy crap, this is great news. The location, next to the long completed but expanding SunCoke facility, is ideal and would help out the struggling towns of Portsmouth, New Boston and Ironton. As for the furnaces, I've heard from inside sources that it would be an integrated facility and would feature electric-arc furances, which does not require the use of coke. I do know that SunCoke has already reserved the coke that will be produced in its expansion project to several companies over the time frame of several years, but another expansion a few years down the road is definitely an option... especially if this steel mill is built and it turns out that it will be an open hearth blast furnace.
September 7, 200717 yr Steel plant progress being made By Rick Greene/Tribune Sports Editor Friday, September 7, 2007 10:30 AM CDT A steel plant that would be built by a Russian company in Haverhill and employ as many as 1,400 is coming closer to fruition.
September 18, 200717 yr Southeast Ohio town hopes to lure Russian steel maker BY TERRY KINNEY | THE ASSOCIATED PRESS HAVERHILL, Ohio - As the head of one of Russia's biggest steel-making companies gazes across a southeast Ohio field, state and local development officials hope he can envision a $1 billion steel mill that would create 1,000 jobs, making it Scioto County's biggest private employer. Gov. Ted Strickland and Lt. Gov. Lee Fisher, who is director of the Ohio Department of Development, toured the Ohio River site near Portsmouth Monday with Russian billionaire Victor Rashnikov, who controls Magnitogorsk Iron & Steel Works, known as MMK. Read more than http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070918/BIZ/709180324/1076/BIZ
September 18, 200717 yr Southeast Ohio town hopes to lure Russian steel maker BY TERRY KINNEY | THE ASSOCIATED PRESS http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070918/BIZ/709180324/1076/BIZ As a former Portsmouth resident, I can tell you that Scioto County would KILL for this.
September 18, 200717 yr Southeast Ohio town hopes to lure Russian steel maker BY TERRY KINNEY | ASSOCIATED PRESS September 18, 2007 HAVERHILL - As the head of one of Russia's biggest steel-making companies gazes across a southeast Ohio field, state and local development officials hope he can envision a $1 billion steel mill that would create 1,000 jobs, making it Scioto County's biggest private employer.
September 18, 200717 yr $1 BILLION INVESTMENT Ohio has rival for Russian steel mill Strickland, Fisher lead tour; Quebec also seeking plant Tuesday, September 18, 2007 5:59 AM By Paul Wilson and Mark Niquette THE COLUMBUS DISPATCH PORTSMOUTH, Ohio -- Scioto County isn't the only place a Russian steel company is considering for a new operation valued at more than $1 billion. Victor Rashnikov, chairman of Magnitogorsk Iron & Steel Works, said yesterday during a two-day visit to Ohio that his company also is considering a site in Quebec.
September 18, 200717 yr Personal note: My father works at the AK Steel Ashland Works facility. Most of the outages for this year were canceled today, hours after Victor Rashnikov made an appearance in Scioto County, in an apparent move to begin cost-cutting as a way to stay competitive. AK Steel has begun contesting the new steel mill, as it will be a direct competitor to some of their operations, however, if you drive into their primary Middletown facility, you will see a small rebirth. Beautification processes are underway, and major buildings are being repaired and cleaned in a now-apparent move to possibly sell their facility if the company begins losing revenues. -- Rashnikov visits site By Rick Greene/The Ironton Tribune Tuesday, September 18, 2007 3:26 PM CDT The chairman and CEO of a Russian steel company visited Scioto County with state officials Monday and continued negotiations on the construction of a more than $1 billion steel mill in Haverhill.
October 6, 200717 yr Paperwork filed for proposed steel mill Posted by Peter Krouse October 05, 2007 15:13PM Categories: Breaking News, Impact An air permit application for a proposed Russian-owned steel mill in Scioto County along the Ohio River was filed today with the Portsmouth Local Air Agency, an agent of the Ohio Environmental Protection Agency. The application was made on behalf of New Steel International Inc. and signed by its president and chief operating officer, Mike Apgar. Ohio EPA spokeswoman Melissa Fazekas said she could not release any other information about the application because it came with a broad request for confidentiality that cited trade secrets. She said the Ohio EPA is conducting a legal review to determine how much of that request will be honored. In general terms, the application includes sections on emission limits, monitoring, record keeping, annual reporting, process operations and materials handling. New Steel International appears to be the U.S. arm of MMK Steel, the Russian company that has been in discussions with the Ohio Department of Development over possible construction of the steel mill. MMK chairman Victor Rashnikov was in Ohio recently to tour the site. He said at the time that a site in Quebec also is under consideration. Mike Locker, a New York-based consultant to the steel industry, said the application does not necessarily mean the Russians have made a decision. "It's a good sign," he said. "It's positive sign that they're serious because it costs money to do that."
October 6, 200717 yr AK Steel has begun contesting the new steel mill, as it will be a direct competitor to some of their operations, however, if you drive into their primary Middletown facility, you will see a small rebirth. Beautification processes are underway, and major buildings are being repaired and cleaned in a now-apparent move to possibly sell their facility if the company begins losing revenues. Interesting. Perhaps the move of AK's headquarters out of Middletown was the first step in getting rid of the Middletown plant.
October 6, 200717 yr A Middletown sale would probably include Ashland as AK would want to focus more on electricial and stainless. Ashland and Middletown are cold mills. I hear over-time at both Ashland and Middletown is non-existant at the moment.
October 6, 200717 yr Ashland? Nope. They are pushing for everyone to work overtime right now, only because AK has deferred maintenance and a rebuilding at the Amanda Blast Furnace for a very long time. And now they have slag that is just _everywhere_ and they have no way of getting it out of the furnace. Think of it this way: You're a sick man when you have stoppage in your bowels. Same thing at the furnace :(
October 14, 200717 yr Wow. AK Steel will be down for a few weeks, maybe more. There is still pig iron (not slag as I stated earlier) in the furnace itself, and they set off five charges (dynamite) today to blast it out... with no avail. Didn't even budge. They are down there with torches and earth moving equipment trying to get it out, and they can't. Might set off six charges tomorrow! :(
October 16, 200717 yr Wow. AK Steel will be down for a few weeks, maybe more. There is still pig iron (not slag as I stated earlier) in the furnace itself, and they set off five charges (dynamite) today to blast it out... with no avail. Didn't even budge. They are down there with torches and earth moving equipment trying to get it out, and they can't. Might set off six charges tomorrow! :( Well that's a tough one! Slag is one thing (a little dynamite and you're set), but pig iron!?!?! eesh! How do you blow that up without blowing up the furnace?
October 17, 200717 yr Second new steel mill considered for Ohio $1.2 billion facility would employ up to 550 Wednesday, October 17, 2007 Peter Krouse Plain Dealer Reporter A group of steel industry managers, primarily from Europe, are looking in Ohio and several other states for a place to build a new mill that would make flat-rolled steel. http://www.cleveland.com/business/plaindealer/index.ssf?/base/business-4/1192610615273970.xml&coll=2
October 17, 200717 yr There's already a plant in Middletown they can have. I'm sure AK would be willing to unload. :)
October 17, 200717 yr Rumour has it that MMI is now looking at AK Steel's Middletown facility. Cheaper and it won't be directly competing. Have you also seen AKS's stock? Outstanding time to hold... buy if it dips!
October 17, 200717 yr I had about three hundred shares...purchased 100 at 11.25 and 200 at 4.65. Sold when I broken a little over a year ago. It was before the lockout. So yeah, I've seen their stock price. It's not a pretty sight for me LOL. And to think, I continued to hold on to Delphi through all this. I guess that's why I have a financial planner now,. I'm not surprised they are looking at AK's Middletown facility. Still, I don't think AK would give up Middletown without Ashland being part of the deal. I believe the difference in the Middletown Works and what MMI was proposing is that Middletown has a Coke Plant. Don't know if that would be a liability or an asset during the consideration process.
October 18, 200717 yr Well, the Scioto County location is adjacent to the new SunCoke facility that is being doubled in capacity right now. There is still room for further expansion for a large clinent -- say, MMI. But if the integrated facility at Middletown, with its coke plant, could be had for a reasonable price, it would be a double bonus. Most likely, the plant would need to be heavily modernized due to its age.
October 18, 200717 yr Most likely, the plant would need to be heavily modernized due to its age. You'd be surprised. It's pretty modern.
October 22, 200717 yr Reports: MMK eyes other options By Rick Greene, The Ironton Tribune, October 22, 2007 Russian steel company Magnitogorsk Iron & Steel Works (MMK), which is considering building more than a $1 billion project in Scioto County, may instead opt to purchase West Chester, Ohio-based AK Steel Corp., according to reports.
October 23, 200717 yr Wow. . . if you want to read an extremely disturbing book that distantly relates to this. Pick up Magnetic Mountain by Stephen Kotkin, it is roughly about Magnetogorsk during the early Communist era continuing through the rise of Stalin. And the steelworkers thought they needed to strike over conditions here. Probably a half-million people were ground up in the Steel Works there.
February 1, 200817 yr Request: Can this thread be renamed: "Scioto County: Magnitogorsk Iron and Steel Works development" or something along those lines? Public hearing on steel plant set By Rick Greene, The Ironton Tribune, January 31, 2008 4:20 PM EST The Ohio Environmental Protection Agency has set March 20 as the date for a public hearing on a water permit requested by a company interested in building a steel plant in Scioto County.
February 1, 200817 yr Future notices regarding Magnitogorsk Iron and Steel Works. I'll keep this one for on-going Haverhill developments.
February 1, 200817 yr Wow. . . if you want to read an extremely disturbing book that distantly relates to this. Pick up Magnetic Mountain by Stephen Kotkin, it is roughly about Magnetogorsk during the early Communist era continuing through the rise of Stalin. And the steelworkers thought they needed to strike over conditions here. Probably a half-million people were ground up in the Steel Works there. I had to read that book in college. And to think the worker's steel mill is now owned by some dude who probably bought it on the cheap in the mid 90s. Those Russians get slammed by both the communists and the capitalists.
February 1, 200817 yr ^^I don't understand why a company would build a steel plant in the middle of nowhere. Doesn't it make sense to concentrate that sort of industry near a population center, that, I don't know, has thousands of former steel workers possibly still unemployed?
February 1, 200817 yr It's not in the "middle of nowhere." It's in a population center of over 250,000, and has great access to four-lane highways and interstates, and first-class railroads. The area has a new coke facility at Haverhill that is currently doubling its capacity and has additional room to grow (a huge selling point). Note that the region once had Detroit Steel and Coke, but the tanking economy and unfaithful imports in the 1980s did both of them in. Scioto County has the second highest poverty rate and one of the highest unemployment rates in Ohio, and fits the classic "Rust Belt" image, due to the massive industry layoffs and closings.
February 3, 200817 yr Public forum set for MMK EPA hosts meeting to discuss permits By Ryan Scott Ottney, Portsmouth Daily Times, February 1, 2008 The Ohio Environmental Protection Agency on Friday announced its plans to host a public meeting in March, regarding permits requested by New Steel International � better known locally as MMK steel production plant.
February 12, 200817 yr I have some news from an insider who says that the company is now purchasing land in southern Ohio!!
February 21, 200817 yr European investors probably won't build steel plant in Ohio Thursday, February 21, 2008 11:10 AM By Paul Wilson THE COLUMBUS DISPATCH Overseas investors interested in building a $1 billion steel mill have all but ruled out Ohio, a consultant working with them said today. http://dispatch.com/live/content/business/stories/2008/02/21/steel.html
February 21, 200817 yr I have nothing against industrial jobs per se, but it's time we moved on in Ohio as a whole from one of a largely industrial economy to a much more diversified one. I'm sorry for the missed jobs, but at the same time, I'm really glad.
February 21, 200817 yr Jpop(tart), you're not seeing the bigger picture. I won't even try to explain, since you're "glad"! Damn, whippersnapper!
February 21, 200817 yr The pull-out from another company is not related to Magnitogorsk Iron & Steel Works, and I do not believe it is related to the company that is putting a steel fabrication shop in New Boston. I'll check this later this evening. Jpop: What do you propose for southern Ohio that was very much dependent on an industrial economy? You have a downtown (Portsmouth), cities (Portsmouth, New Boston, Sciotoville, Ironton, etc.) and an area (Tri-State) that was very much dependent upon the 5,000+ jobs at Armco, 4,500+ jobs at Detroit Steel, and the thousands upon thousands of supporting employment. Oh yeah, I guess we can always invest in the service sector more -- Wal-Mart is one of the largest employers in the region and state, and they just plopped a new Supercenter 1/2 mile from an existing facility on what was a very large and prime industrial site. Let's keep paving over our industrial lots for Wal-Marts and McDonald's! It's job diversification!
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