STEEL INDUSTRY Buyer of LTV Steel plants forms a new company

The new owner expects to close the sale by April 15.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
CLEVELAND -- The company that is buying nearly all of LTV Steel has created a new company called International Steel Group.
The company said it expects to close its purchase of LTV plants before April 15.
WL Ross & amp; Co., a New York investment company, announced the name of the new company Monday. LTV Corp. selected Ross as the buyer for LTV Steel plants last month, and the selection was approved in U.S. Bankruptcy Court.
Details to come: Mark Tomasch, an LTV spokesman who now is working for International Steel, said more details about the company's operations would be released after the closing of the sale.
No dates have been released for the restarting of production, but company officials have said they hope to get the plants running as soon as possible.
"There's still a lot of work that needs to be done," Tomasch said.
Rodney Mott, International Steel president, has said his top priorities are forming an executive team and negotiating a new contract with the United Steelworkers of America.
Tomasch said the company was not ready to release any information on either issue.
Plant responsibility: A news release said International Steel intends to establish a decentralized, entrepreneurial culture in which each plant would have full responsibility for its performance and results, including local management of accounting, purchasing, engineering, customer service and human resources.
Each plant would establish its own name to reflect its identity within the local community.
Wilbur Ross, chief executive and chairman of WL Ross, said the International Steel name was chosen because international competition is a permanent part of the steel business.
"This new venture will apply the most effective management and operating practices and seek opportunities worldwide to achieve long-term profitability and value for our investors," he said.
Assets, liabilities: Ross is acquiring LTV plants and inventory for $127 million plus the assumption of about $200 million in environmental liabilities. Among the operations in the sale are the coke plant in Warren; steel mills in Cleveland and East Chicago, Ind.; and a finishing plant in Hennepin, Ill.
LTV Steel plants were shut down last year as part of the bankruptcy court proceedings of LTV Corp. The Cleveland-based company still is working on selling its LTV Copperweld metal fabricating business.
shilling@vindy.com