Prospective buyer for RG Steel should work closely with state

In announcing that he has put in a bid of $17 million for RG Steel LLC’s plant in Warren, C.J. Betters, owner of C.J. Betters Enterprises in Monaca, Pa., stopped short of making a firm commitment to restart the production line at the 100-year-old Pine Street facility.

Betters’ hedging is not reassuring — especially given the opinion of RG Steel officials that the plant would not be out of commission long. Steel industry watchers have described it as “a gem of a facility.”

Why, then, would Betters use the word “if” in discussing the future? Here’s what he told The Vindicator last week as he talked about his potential acquisition:

“Once we get through that [closing the deal], we’ll start to examine the records and see what we can do. If there’s a way to get it restarted, we’ll do that.” Betters said he could not guarantee what the level of production would be and how many people would be employed.

That certainly isn’t what the Mahoning Valley, in general, and the 1,000 RG Steel workers, in particular, want to hear.

If the plant is, indeed, a “gem,” then it should be allowed to shine.

The state of Ohio has a crucial role to play, and we would urge Gov. John Kasich, who has touted his administration’s economic development successes, to pull out all the stops in making the reopening of the RG Steel plant in Warren a reality.

About a month ago, in the wake of the plant ending operations after the company filed for Chapter 11 bankruptcy protection, Kristi Tanner, managing director for manufacturing at JobsOhio told The Vindicator the state is “an active participant in supporting the plant’s future and supporting the workforce.” JobsOhio is the private, nonprofit corporation formed by the governor and the General Assembly to lead Ohio’s job-creation effort.

Tanner said the agency is ready to help in any way it can, but is leaving it up to RG Steel to determine the future of the Warren facility. Given the bid from Betters, the future may well rest with the level of assistance the new buyer receives from the state and federal governments. President Obama, whose re-election bid is far from assured, has visited the Valley and hailed its steel-making history. The president has also talked about the importance of manufacturing to the nation’s economic well-being.

State aid package

In her comments in July, Tanner said a state aid package could be available if a potential buyer were interested in discussing economic incentives.

Betters should let the Kasich administration know what help he needs to not only restart the plant, but to bring back the 1,000 workers who were laid off as a result of the closing.

There have been a series of owners, including Republic Steel, LTV, WCI and Severstal, who were drawn by the fact that the customer base exists within a 100- to 150-mile radius.

The permanent loss of 1,000 jobs will be a blow to the city of Warren and the Valley.

Betters’ bid for the plant is an important first step toward reaching the plant’s potential.