TK Alabama's outlook good, RG's grim: execs

Oct 29, 2012 | 12:36 PM | Chris Prentice

Tags  ThyssenKrupp, RG Steel, ASD, steel, Russ Delaney, Keith Busse, SDI, Dave Lerman Lourenco Goncalves

LAS VEGAS — With the construction sector slated for a rebound, steel service center executives said it won’t be hard for ThyssenKrupp AG to find a buyer for its Calvert, Ala., steelmaking complex—although the sales price may not be as high as the German steelmaker would hope.

"We think it’s going to be operated," Russ Delaney, president of Kloeckner Metals USA’s flat-rolled group, said at the Association of Steel Distributors (ASD) fall conference in Las Vegas. "(But) I think ThyssenKrupp is going to take a significant haircut to sell it. Their global direction seems to be to get out of steel (but) someone will buy it and it will be somebody who has the hot metal available."

Keith Busse, cofounder and chairman of Steel Dynamics Inc., agreed that a hot end is crucial for the new operator. "It’s not going to work unless ... you buy it really economically and ... you’re willing to put a front end on it," he said.....





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