HAGERSTOWN, Maryland (AP) – The United Steelworkers union and Maryland’s economic development chief say they disagree with a federal order that global steel giant Mittal Steel Co. sell its Sparrows Point mill near Baltimore to settle antitrust issues raised by the Dutch company’s planned acquisition of Arcelor SA.
While ordering the sale of the Maryland plant, the consent decree proposed Tuesday by Justice Department would allow Mittal to keep a Weirton, West Virginia, mill that had volunteered to be sold to preserve competition for tin-plated steel, which is used primarily for food and aerosol cans.
The United Steelworkers, which represents the mill’s 2,106 production workers, said it will seek a reversal of the decision because selling Sparrows Point won’t necessarily help workers or the company.
“It makes Mittal USA not as strong as it could be and does not assure Sparrows Point or Weirton a secure future,” said David R. McCall, chairman of the union’s Mittal Steel committee.
The Justice Department said Sparrow Point’s profitability and port access would help make it a viable competitor. In contrast, the Weirton mill has failed to thrive under Mittal’s ownership, according to the Independent Steelworkers Union, which represents workers there.
Sparrows Point, with about 2,400 workers and one of the largest blast furnaces in North America, faces the prospect of its fourth owner in as many years.
David W. Edgerley, secretary of the Maryland Department of Business and Economic Development, said the state would work with Mittal to find a buyer for Sparrows Point, but he wasn’t happy with the decision.
“We never like to have this kind of ruling that has an adverse effect on any Maryland business,” Edgerley said.
An expert on Sparrow Point’s 120-year history said the order could be good for the mill and the domestic steel industry.
Mark Reutter, an Urbana, Illinois, writer who chronicled Sparrows Point in his 1988 book “Making Steel,” said the decision means the government has heard manufacturers’ complaints about too much steel consolidation.
“The sort of unspoken aspect here is that someone in Washington is signaling displeasure over the last two years and wants more competition in the industry,” Reutter said.
Illinois-based Esmark Inc. said it might consider a joint venture to buy Sparrows Point if the Weirton mill is unavailable. And industry experts said a number of German, Indian and Russian companies are shopping for North American steel mills.
But the German steelmaker ThyssenKrupp AG said Wednesday it has no interest in acquiring the Maryland mill.
