Big Russian steelmaker buying WCI Steel in Warren

WARREN — Russia’s largest steelmaker has struck a deal to buy WCI Steel.

“It’s a great announcement,” said Ed Machingo, president of United Steelworkers of America Local 1375.

He said officials of Severstal have told senior USWA officials that they plan to invest millions of dollars in coming years in scheduled maintenance and upgrades. Machingo said he doesn’t expect much change in staffing at the Warren mill, which has 1,100 hourly workers.

WCI officials said Friday that Severstal plans to buy the company’s stock for $139.8 million, plus assuming $230 million in debt. The deal is expected to close this fall.

Bondholders who held the company’s previous debt assumed control of the company in 2006 after WCI spent two and a half year operating under bankruptcy court protection.

For more information, see Saturday’s Vindicator or www.vindy.com.