Essar and Minnesota Steel

I will give a general apology to anyone having to read this, for it will be confusing at best. This news is moving fast, and what happened two weeks( much less months) ago is no longer true. Essar's purchase of Esmark was denied by the USW, so it may no longer happen; most likely it will but with a delay or modification. Additionally, ArcelorMittal sold the Bethlehem works to the Russian firm OAO Severstal. Severstal has also made an offer to Esmark on a buyout that already has union approval. Remember this also: Essar bought Canadian firm Algoma steel at the same time they bought Minnesota Steel. Why am I writing all this useless drivel?

Twice last week I was told by construction workers they were sticking around because the deal was done and building begins in July. In short, rumor. No announcement. Nothing in the business press. No politicians and businessmen clamoring for the camera. Nothing. And nothing is the only thing happening. But the important thing to remember is they already have steel production capacity in North America. It appears that many have assumed that what was proposed is still going to happen. All I am saying is it may not..it may be only a mine to supply their other facilities. They went after Bethlehem hard and still want Esmark's other facilities . People: We are nothing but a butt pimple to these corporations. Do not plan your life around them.

For everyone assuming a steel plant will be built at Cooley ( Minnesota Steel), you need to see this. What this means in its entirety, only Essar knows, but it could have an effect on plans. You see, if you already own steel production capacity, and you already own the ore, why bother building another plant? This might be a makeup deal for this. What does that have to do with it...Essar bought ( not approved yet) Esmark...it awaits approval, but it looks like a make up deal for the fighting over Esmark...This is about market share people, and if you are sitting waiting for the gods of steel to make a decision, do not be stupid and have a backup plan.

Americans are the people who bulldoze fifty acres to build a house, then place a moose and eagle statue in their yard because they love nature...