NEW YORK NLMK
USA, including its Sharon Coating and NLMK Pennsylvania
subsidiaries, is suing distributor Geneva-Liberty Steel LLC for
more than $81,000 for allegedly breaching 18 steel coil
NLMK, a division of
Russias NLMK Group, alleges in a lawsuit filed in U.S.
District Court in Pennsylvania that Geneva-Liberty Steel
breached its purchase agreement from January through May 2012
by refusing a number of coils from Sharon Coating, claiming
they were damaged, causing the steelmaker to suffer losses in
retrieving and reselling the coils.
NLMK also alleged that
Geneva-Liberty Steel breached its agreement from December 2011
through September 2012 by short-paying for a number of
cold-rolled coil orders from its Pennsylvania facility, some of
which were also claimed to be defective.
president of Youngstown, Ohio-based Geneva-Liberty Steel, said
that he would meet the company in court because NLMK
effectively tried to bill the company for "distressed
"They agreed to the
rejection and took the steel out of our facility," he told
AMM. "After it was out, they sold it on the open
market, as they do with distressed material, and billed us for
the difference. Its not going to be paid and Im not
the least bit concerned."
NLMK USA and its counsel could not be reached for comment.
NLMK USA, which
includes NLMK Pennsylvania, NLMK Indiana and Sharon Coating,
produces a variety of hot-rolled, cold-rolled and coated
products, according to its website. Its facilities have a
combined 770,000 tonnes of steelmaking electric-arc furnace
capacity and 2.7 million tonnes of hot-rolling capacity.