Slater Steel making headway in sale of Fort Wayne mill

Slater Steel making headway in sale of Fort Wayne mill

According to market reports, Canadian Slater Steel Inc (SSI) came to an agreement with respect to the sale of its Fort Wayne specialty steel mill with local investment firm Arlington Capital LLC. As previously reported by SteelOrbis in October, SSI aimed to close the mill by latest in the first quarter of 2004 and axe around 370 jobs. In line with SSI's plan, Fort Wayne based Arlington Capital is also intending to operate the mill by reduced workforce and offers a price ranging between $3-5 million for the mill and its production equipments. This relatively lower scaled mill is planned to concentrate on stainless steel bar production in dia. 63.5mm to 203.2 mm. The agreement between two companies is expected to finalize on Monday, however it is not yet certain whether the sale will end in favor of Arlington Capital or not, as deadline for submitting bids is February 4. Later, an auction will be held on February 11. The initial bid should be minimum $190.000 higher than Arlington Capital's bid. SSI's bankruptcy protection will expire on January 30, 2004.