Steel Mills

Liberty House Pursuing Canada Steel Mills

Written by Sandy Williams


A new bidder may step forward for Essar Steel Algoma, according to UK publication Financial Times.

According to the Financial Times, Liberty House, a metal trade and integrated steel producer, hopes to secure deals for both Essar Steel Algoma and US Steel Canada.

Liberty is also watching the developments in the Chapter 11 bankruptcy at Essar Steel Minnesota as a possible future supplier for the Canadian mills.

Liberty House is currently pursuing Tata Steel’s assets including the largest plant at Port Talbot. Liberty House announced a “GreenSteel” strategy for the UK mills that include using renewable energy and electric arc furnaces to melt UK scrap into steel. To Liberty House’s frustration, Tata Steel put the sale of its assets on hold following the Brexit vote. Tata Steel is now discussing a joint venture with German steelmaker ThyssenKrupp.

The USW has backed a proposal by Essar Global to regain Essar Steel Algoma along with US Steel Canada. Bedrock Industries remains interested in US Steel Canada, after KPS Capital pulled out of the bid process for both Essar Algoma and USSC.

US Steel Canada has asked the court for an extension of three weeks to find a suitable buyer for the company. William Aziz, chief restructuring officer for USSC, said in a motion on July 15 that the remaining bidders are working toward a conclusion in the SISP transaction and asked that the process be extended to August 5. He noted that even if a successful purchase is negotiated, it will be Fall 2016 before it will be concluded.

Wrote Aziz. “The requested Stay Extension Period reflects the time required to permit USSC to determine whether it remains possible to complete a going concern transaction with one of the remaining bidders and proceed to implement such a transaction or, in the alternative, to assess and purse an alternative transaction or combination of transactions.”

US Steel Canada is prohibited from commenting on the identity or intentions of bidders due to a confidentiality agreement.

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