New RG Steel owner to talk with workers

Staff report

WARREN

The new owner of RG Steel here will address workers at 1:30 p.m. today about their futures and that of the steel mill.

C.J. Betters previously said it would take a lot of capital investment to restart the plant, at 999 Pine Ave. SE, and a lot of things within it needed to be fixed.

A federal bankruptcy judge in Delaware last week approved the $16 million sale of RG Steel to C.J. Betters Enterprises, based in Monaca, Pa.

Part of Betters’ bid included $1 million in credit to a winning bidder that agreed not to demolish the plant for nine months, to look at the company records and to try to restart production.

ArcelorMittal owns a coke plant next to RG Steel’s Warren facility, and it will be allowed to preserve an option to purchase certain assets in Warren, including the boiler and power-house facilities.

ArcelorMittal had signed the purchase-option deal in 1988 with Warren Consolidated Industries Inc., which later became RG Steel.

RG Steel filed for bankruptcy May 31. At that point, it began a process to finish existing orders. In June, more than 1,000 workers were laid off.

Workers had a rally and informational meetings in August with United Steelworkers of America union officials to try to get information about their situation before the sale was finalized.

The employees lost their health insurance and other benefits at the end of August.