SHARON Sawhill sale faces scrutiny

Owner AK Steel said the company doesn't fit its long-term strategy.
SHARON, Pa. -- The parent company of Wheatland Tube has signed an agreement to buy Sawhill Tubular, which employs 775 people in Sharon, Wheatland and Howland Township.
Sawhill's current owner, AK Steel of Middletown, Ohio, said Tuesday that it and the John Maneely Co. reached a sale agreement but boards of directors of both companies have yet to approve it. It also would need regulatory approval.
Terms of the deal were not disclosed.
AK Steel said in a news release that Sawhill's product line doesn't fit with its long-range strategy. A company spokesman couldn't be reached to comment.
Second time: This is the second time that John Maneely Co., a New Jersey-based holding company for Wheatland Tube, has attempted to buy Sawhill.
In 1999, Sawhill told employees that a sale of its plants to the Wheatland Tube owners was being explored. At the time, Sawhill was owned by Armco.
Instead, Armco was acquired by AK Steel for $842 million and the discussions with John Maneely ended.
Wheatland Tube officials said in 1999 that they didn't expect antitrust problems from taking over Sawhill and that they didn't plan to shut down any plants. It said adding Sawhill would make Wheatland a stronger company, particularly in the area of continuous weld products.
Products: Sawhill manufactures continuous weld, electric resistance weld, seamless and mechanical tube and pipe products in diameters up to 6 inches. End uses for the division's tube and pipe products include construction, manufacturing, transportation, fire suppression and conveyor systems.
AK Steel produces flat-rolled carbon, stainless and electrical steel products for automotive, appliance, construction and manufacturing industries. It has about 11,500 employees in Ohio, Kentucky, Indiana and Pennsylvania.