Workers await word on sale of RG Steel facility

Staff report

WARREN

The United Steelworkers union hall here had employees waiting throughout the day seeking information about the future of their employer.

Their wait continues today.

The Warren plant was scheduled to sell at auction Tuesday in New York, but there was no information about who, if anyone, might have purchased the plant, leaving the more than 1,000 people who worked at the facility to continue to wonder.

The workers in Warren were concerned they could face the same fate as workers at RG Steel facilities in Wheeling, W.Va., and Mingo Junction, Ohio, where the plants and equipment were sold at auction, remaining material scrapped and the plants shuttered.

Ira Rennert, who owns RG Steel, is able to bid on the properties, but it is unknown at this time if he has done so.

The leadership at USW Local 1375 had no comment Tuesday. RG Steel has not commented about the bankruptcy for several weeks.

The Warren plant was quiet Tuesday with only a few vehicles parked there. There were two tractor-trailers that came and went at the location during a short period of time.

The auction had been scheduled for last week, but it was delayed to allow the company to identify a lead bidder for the auction for the Warren and Sparrows Point, Md., plants.

According to a federal court filing, there had been no change in the sale time and no “stalking horse” or lead bidder has been identified.

Employees at the Warren facility have been laid off since the plant began shutting down after completing orders in June. RG Steel filed for bankruptcy May 31.

Even if the sale is completed, there are still issues facing the new owner and the potential sale.

The U.S. Department of Justice filed an objection to the sale of the Warren and Sparrows Point facilities last week due to the bill of sale not including information about U.S. Environmental Protection Agency complaints against both plants. The Ohio EPA also has outstanding violations regarding the Warren plant.

The federal complaint relates to both facilities reportedly going beyond maximum air-pollution standards.

The state violation is a result of RG Steel’s reportedly piling materials too high at the Warren plant’s on-site solid-waste landfill.