Esmark to cut costs as Yorkville restart nears

Oct 12, 2012 | 03:33 PM | Anne Riley

Tags  Esmark, James Bouchard, RG Steel, Yorkville, U.S. Steel, ArcelorMittal, Wheeling-Pittsburgh, Anne Riley

NEW YORK — Esmark Steel Group LLC expects to shave $10 million per year off operating costs at its newly acquired Yorkville, Ohio, cold-rolling facility "starting day one," keeping the mill competitive even in today’s challenging market environment, according to James P. Bouchard, chairman and chief executive officer of parent company Esmark Inc.

"You’re going to get all these naysayers out there because of the steel market, but we’ve restructured the company," Bouchard said of Esmark’s plans for the operation. "It’s a different game today."

Sewickley, Pa.-based Esmark, which on Thursday closed into escrow on its purchase of RG Steel LLC’s Yorkville mill and its 50-percent interest in Ohio Coatings Co.’s tinplate facility, intends to reduce expenses at the Yorkville mill through a number of cost-cutting initiatives, including lower power costs and a more competitive labor agreement, Bouchard said. He noted that the cost savings will be realized even before the idled mill’s planned ramp-up in early 2013 (amm.com, Oct. 11).....