Matalco to break ground in September

Matalco to break ground in September

LORDSTOWN

Matalco Lordstown, the company’s newest manufacturing plant, will have a groundbreaking ceremony Sept. 17 at 5120 Tod Ave.

Canada-based Matalco Inc., a company that makes aluminum billets for the aluminum-extrusion industry, was approved for a 50 percent, eight-year tax credit that would provide $450,000 in assistance from the state in December.

The village of Lordstown also approved a 75-percent, 10-year property-tax abatement for the Ontario company.

The project, according to a statement, was reported to be a $92 million investment that would create 60 jobs and an annual payroll of $4 million, according to Vindicator files.

Severstal selling US plants for $2.3B

NEW YORK

Russian steel company Severstal is exiting the U.S. market, selling two steel plants to AK Steel and Steel Dynamics for about $2.33 billion.

Word of a possible sale began to circulate earlier this year as the West threatened sanctions against Russia for its activity in Ukraine, but Severstal was not among those companies targeted by those actions.

Steel Dynamics Inc. said Monday that it will pay about $1.63 billion for Severstal Columbus, which is in northeast Mississippi. The acquisition will increase Steel Dynamics’ annual steel-shipping capacity by approximately 40 percent to 11 million tons.

Steel Dynamics, based in Fort Wayne, Ind., anticipates the deal will add immediately to its earnings per share.

The boards of both companies have approved the sale, which is expected to be completed before year’s end.

Separately, AK Steel Holding Corp. said it is buying Severstal’s steel plant in Dearborn, Mich., for $700 million. The deal also includes a coke-making plant and interests in three joint ventures that process flat-rolled steel products.

The West Chester, Ohio, steelmaker said the Dearborn plant is close to many of its customers and the assets it is getting in the sale complement its existing carbon steel operations. The company expects the transaction to immediately add to its earnings and generate about $50 million in annual cost savings.

Verizon launches rewards program

NEW YORK

Verizon Wireless is launching a nationwide loyalty program this week for its 100-million-plus subscribers. There’s a twist, though: To earn points for every dollar spent, subscribers must consent to have their movements tracked so the company can help target ads that match their interests.

Verizon is the first wireless carrier to roll out a comprehensive rewards program, and it’s expecting big benefits from it. The program already has been offered for a few months in some states. Jeffrey Nelson, vice president of wireless marketing, suggested that even that limited program helped with customer retention, though he didn’t provide details.

Vindicator staff/wire reports