RG Steel sold to liquidator; union, county leaders worried

SPARROWS POINT - Everyone knew that the RG Steel Plant at Sparrows Point was for sale.

But they're worried about the buyer.

Hilco Industrial paid 72 million dollars for a plant that just 14 months ago was worth close to a billion dollars.

Hilco is a company that specializes in acquisitions and dispositions of industrial plants.

In simple terms a liquidator.

 "That wasn't what we were looking for but with this company we looking for an opportunity to then find a strategic steel buyer that would buy the plant and run it properly with its own source of raw materials and the plant is worth the most to that kind of buyer." Steel Workers Local 9477 President Joe Rozel says.

Rozel says that the 17 hundred union workers at Sparrows Point account for about four percent of the steel production in the United States.

He says he even if Hilco sells off assets they can be bought by someone who is willing to use them and use them here.

"We have one of the best blast furnaces in the world one of the best coal mills in the world a great coding line a lot of great assets here that are some of the best in the world this is a symptom of American manufacturing that's being hollowed out and we're gong to have to stop." Rozel says.

And area leaders are also not throwing in the towel just yet.

Baltimore County Executive Kevin Kamanetz got the news late this morning that RG steel had been sold.

He says they've been working with the union and the state's congressional delegation to try to keep the plant viable

Kamanetz says a lot could still happen.

"It's dependent on a bankruptcy judge approving the sale and I expect that the creditors community would raise objection to it because it was very low bid that being said we're united with our steel workers we don't think this is over yet." Kamanetz says.

At this point it's a waiting game.

RG Steel's two other plants were also sold to liquidators.   

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