Takeover could strengthen PSL North America
Aug 22, 2014 | 06:16 PM
| Thorsten Schier
EW YORK PSL North America LLCs pending sale to Indias Jindal SAW Ltd. could make the mill a more viable competitor in the large-diameter spiral-welded pipe market due to its new parents deeper pockets, industry participants told AMM this past week.
"Theyll have more money to finance raw material so theyll be more viable from that standpoint," said one market source.
Raw material seems to have been a concern at Bay St. Louis, Miss.-based PSL North America prior to its Chapter 11 bankruptcy filing in mid-June. The sales agreement with Jindal SAW calls for an immediate cash payment of $327,600 to one of the mills flat-rolled steel suppliers, AM/NS Calvert LLC, as well as the immediate return of all pipe made from coil supplied by AM/NS Calvert and the return of any coils manufactured by Calvert and not yet converted into pipe (amm.com, Aug. 20).....
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