Cleveland-Cliffs has announced the commissioning of its new vertical stainless bright anneal line at its Coshocton Works facility in Coshocton, Ohio. This $150 million investment is now completed and will supply premium stainless steel for high-end automotive and critical appliance applications.
Lourenco Goncalves Chairman, President & CEO Cleveland-Cliffs
The new annealing line uses a 100% hydrogen atmosphere, replacing the conventional acid-based processing, and includes a hydrogen recovery unit to recycle hydrogen and use a 50/50 mix of new and used hydrogen in the process.
Lourenco Goncalves, chairman, president and CEO of Cliffs said: “By using hydrogen and advanced automation, we’re dramatically improving the quality and productivity of this critical product that our customers rely upon Cleveland-Cliffs for.”
To mark the opening, a ribbon cutting ceremony was held on Wednesday, July 2 at 11:00 a.m. ET at Cliffs’ Coshocton Works facility. The event was attended by key elected officials along with Cleveland-Cliffs’ executives, employees, and key customers.
Cleveland-Cliffs is a leading North America-based steel producer with focus on value-added sheet products, particularly for the automotive industry.
Press release is available in its original form here.
Cleveland-Cliffs Inc, a major supplier of steel to the automotive industry with heat treat capabilities, has announced its acquisition of Stelco Holdings Inc, an integrated steelmaker with two operational sites in the province of Ontario. The $2.5B (USD) transaction will bring 1,800 workers into the Cleveland-based steelmaker’s current workforce of 18,000 employed across its facilities in the United States and Canada.
Cleveland-Cliffs Inc. (Cliffs) recently released its definitive agreement to acquire Stelco Holdings Inc, increasing its steelmaking footprint and doubling the company’s exposure to the flat-rolled spot market, which includes raw materials, energy, and healthcare. Stelco adds capabilities that complement Cliffs’ existing operations, confirming the Cleveland-based steelmaker’s commitment and leadership in integrated steel production in North America.
Lourenco Goncalves Chairman, President and CEO Cleveland Cliffs
Stelco’s facilities consist of Lake Erie Works, a new integrated steelmaking facility in North America, and Hamilton Works, a downstream finishing and cokemaking facility, adding capabilities that complement Cliffs’ existing operations and product portfolio, while diversifying its market industries. Upon completion of the transaction, Cliffs shareholders will own approximately 95% and Stelco shareholders will own approximately 5% of the combined company, on a fully diluted basis.
“We did this deal the way it should be done, reaching a respectful agreement between the two parties that keeps national interests at the forefront and recognizes the importance of the workforce,” said Lourenco Goncalves, chairman, president and CEO of Cliffs. “The enterprise value of this transaction is significantly lower than the cost of building an equivalent replacement mill in the United States, and the cost structure is lower than what a new U.S. mill would provide us. Stelco is a company that respects the Union, treats their employees well, and leans into their cost advantages. With that, they are a perfect fit for Cleveland-Cliffs and our culture. We look forward to proving that our ownership of Stelco will be a net benefit for Canada, the province of Ontario, and the cities of Nanticoke and Hamilton.”
Alan Kestenbaum Executive Chairman & CEO Stelco Holdings
“I am proud of what we have accomplished over the past seven years, and the value we have generated,” said Alan Kestenbaum, executive chairman and CEO of Stelco. “Most importantly, we have revitalized Stelco and restored it to its iconic status in Canada. I know thac Cliffs will continue to build upon the excellent work and life environment we have created for all of our employees and continue to be a reliable supplier to our valued customers, while maintaining Stelco’s stature and reputation in Canada and maintaining our Canadian national interests. One of the important drivers for this transaction was receiving a meaningful portion of the consideration in Cliffs shares. I have strong belief and optimism in the North American steel market. I believe that Lourenco and his team have created a winning platform, and I intend to remain an investor in Cliffs for a long time to come as he and his team continue to build out their platform and business.”
Pictured in featured image: Lourenco Goncalves
The press release is available in its original form here.
