Over the past couple weeks, rumors have been swirling regarding Sparrows Point, Maryland-based RG Steel's, a flat rolled steelmaker, plans to sell the company. On Thursday, RG's Chief Commercial Officer Jerry Nelson said during an AWMI meeting that "everything is on the table" regarding the steel mill's assets.
National news reports Monday cited Bette Kovach, spokeswoman for the steelmaker, as confirming that "we are looking at other options for our business" in addition to cost-reduction initiatives, such as pay cuts for certain employees, that were announced earlier this month. RG said that an uncertain economic outlook is the driving factor behind the May 11-announced cuts.
RG Steel, particularly the Sparrows Point plant, has been suffering from weaker than expected order books and problems securing all of its steelmaking raw materials. The mill's blast furnace was temporarily idled last December and some workers were laid off before Cerberus Capital Management LP, a private-equity firm, gave RG a "cash infusion."