ArcelorMittal says it’s willing to sell plant
Schumer meets with CEO on Lackawanna plant’s fate
Sen. Charles E. Schumer said an ArcelorMittal executive assured him the company will consider an offer to buy and operate its manufacturing plant in Lackawanna, which is scheduled to close next month.
“The door is at least open to selling the plant and keeping the workers employed,” Schumer, D-N. Y., said Wednesday, a day after his conversation with Michael Rippey, executive vice president and chief executive officer of ArcelorMittal USA.
ArcelorMittal, headquartered in Luxembourg, late last year announced it would close the rolled steel finishing plant, which has 260 hourly and salaried employees, at the end of April. The union representing hourly workers has said it brought to the company’s attention an unidentified prospective buyer. But union officials have expressed frustration about making headway on a deal as the closing date approaches.
United Steelworkers of America Local 2604 appealed to Schumer and other elected officials to urge ArcelorMittal to sell.
Schumer said Rippey told him he was not aware there was a party interested in buying the plant but asked for the prospect to be put in touch with him. Rippey told Schumer that if there is a viable potential owner for the operation, the company preferred to sell the plant rather than close it.
“I think everyone has to move quickly,” Schumer said.
Anthony Fortunato, president of Steelworkers Local 2604, said he was pleased that Schumer made the case directly to Rippey. But Fortunato said he is concerned that time is running out to make a deal.
“I’m about 50-50 that it will work out,” Fortunato said. The more equipment that Arcelor- Mittal moves out, the more difficult it will be for a new owner to step in and start manufacturing quickly.
ArcelorMittal has said previously that would “act prudently and consider” offers to buy the plant, but has not directly responded to questions about whether it has received such an offer.
The union has not identified the prospective buyer, which it says requested anonymity. The prospect intends to use the plant to make products that would not directly compete with ArcelorMittal, Fortunato said.
Buffalo Niagara Enterprise and Empire State Development Corp. have also been involved in the effort.
“We’re hopeful,” said Paul Pfeiffer, director of investor and public relations for BNE. “We thought it was good fit when we introduced the company to this opportunity.”
The ArcelorMittal plant was once part of Bethlehem Steel’s complex. Republic Engineered Products operates a bar mill in a neighboring facility.
