NEW YORK Gerdau
Long Steel North America is suing the previous owners of Tamco
Steel Inc. for allegedly misrepresenting the status of the
facilitys air quality permits and compliance with
Gerdau is seeking to
recoup an estimated $13 million in costs related to air quality
permits and emissions fees, with further costs expected.
In an Oct. 10 filing
in U.S. District Court in southern New York, the company
alleged that the Rancho Cucamonga, Calif., facilitys
former shareholders falsely claimed the mill had all the
necessary permits and was running in accordance with
Gerdau claims in the lawsuit that when it took control of the
mill in 2010 it found the facility wasnt in compliance
with environmental regulations, and it was forced to cover the
costs of air permits and pay emissions fees.
The mills former
stakeholders were Pasadena, Calif.-based Ameron International
Corp., Mitsui & Co. (USA) Inc., a subsidiary of Tokyo-based
Mitsui & Co. Ltd., and Japans Tokyo Steel
Manufacturing Co., whose shares were purchased for $165 million
amm.com, Sept. 15, 2010).
costs will include emissions fees for sulfur oxides and
nitrogen oxides, as well as permit fees for modifications the
previous shareholders made to the mill, like increased burner
input and increased ladle heat input.
Gerdau still faces
"likely" fees related to environmental compliance at the mill,
the company said. "It is likely that the (South Coast Air
Quality Management District) will impose penalties on (the
mill) as a result of the defendants failure to obtain
necessary permits, under reporting and inaccurate calculation
of air emissions, violation of permits and regulations, and
improperly permitted emissions sources," according to the
Gerdau recently laid
off a crew of workers at Rancho Cucamonga, citing import
pressure and poor market conditions (
amm.com, Oct. 7).
Gerdau declined to
comment. Counsel for Ameron International couldnt be