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 purchase agreements.
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.
Dave McLeroy, 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 material."
"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."
Portage, Ind.-based 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.