USW Approves Severstal Acquisition of ArcelorMittal's Sparrows Point Mill

Deal Demonstrates USW critical player in North American steel consolidation

PITTSBURGH, March 21 /PRNewswire-USNewswire/ -- Leo W. Gerard, President of the United Steelworkers (USW), today confirms the union's initial approval of Russia's Severstal North America Inc. (SNA) acquisition of the Sparrows Point steel mill in Baltimore, where the union represents 2,200 steelworkers.

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"Negotiations with both the seller and the new buyer of the Sparrows Point steel mill are completed," Gerard said. "The Severstal deal demonstrates the USW and its members are the critical players in the continuing consolidation and revitalization of North America's steel industry for those who want access to our hemispheric market. USW-represented steelworkers are world class partners for the economic future," Gerard stated.

David McCall, Chair of the USW bargaining committee for ArcelorMittal in North America, said, "In the search for a buyer, following the unraveling of a previous proposed deal last December, we have always maintained that the union will not reach agreement with a successor unless it includes a long term business and operational strategy that produces security for our members, their families and our retirees. We now have that at Severstal."

The USW's bargaining chair declared, "SNA has the capital assets to compete globally and a commitment to the steelworkers at Sparrows Point that assures a great future in making steel for the North American market."

John Cirri, President of USW Local 9477, representing workers at Sparrows Point, wrote an email message to the union members today, saying: "The many months of uncertainty on who will be our third new owner are finally over. Severstal North America has agreed to purchase Sparrows Point for $810 million." He added, "The protections and provisions provided under the USW collective bargaining agreement with Arcelor/Mittal remain intact. We believe that the date Severstal officially takes control will be in about 60 days."

ArcelorMittal's Sparrows Point is being sold by Joseph G. Krauss, Divestiture Trustee, as required by a federal district court to settle a complaint filed by the U.S. Department of Justice following the merger agreement between Mittal Steel and Arcelor SA in 2006.

SNA ranks as the fourth largest integrated steel company in the U.S. with manufacturing facilities and corporate headquarters located in Dearborn, MI. It is a wholly-owned subsidiary of OAO Severstal, one of Russia's largest steelmakers and one of the top fifteen integrated steel manufacturers in the world.

ArcelorMittal's Sparrows Point facility is a former Bethlehem Steel plant that is a fully integrated steel-making facility capable of producing 3.6 million tons of raw steel annually. Products made at Sparrows Point include hot-rolled sheet, cold-rolled sheet, galvanized sheet, Galvalume, tin mill products and semi-finished steel.

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Source: United Steelworkers (USW)

CONTACT: Gary Hubbard of the United Steelworkers (USW), +1-202-778-4384,
+1-202-256-8125

Web Site: http://www.steelworkers-usw.org/

2008-03-21 15:53:57 0317907 PRNEWSWIRE