Russian steelmaker Evraz is beginning the process of selling its North American assets, including the Rocky Mountain Steel Mill in Pueblo, the company said Wednesday.
“EVRAZ plc announces that it will begin the process of seeking an offer to acquire its North American subsidiary. The sale will unlock the independent value of its North American business.”
Evraz could not be reached for comment immediately, but a statement said the company “does not intend to provide additional information regarding this process until or until the process is complete.” .
The impact of the sale on the approximately 1,100 workers at Evraz’s Pueblo plant is unknown at this time.
But Eric Ludwig, president of the United Steelworkers 2102 Union, which represents more than 750 Evraz Pueblo employees, said the union’s contract would protect its members in the event of a sale.
Ludwig said Wednesday that he was informed of Evraz’s announcement, but said the United Steelworkers 2102 Union is now focused on ongoing negotiations with Evraz over a new contract.
London-based Evraz Plc did not provide additional details about the sale process, but said in a statement that the solicitation process is now “running under the UK’s Financial Sanctions Enforcement Agency”.
“Any possible transaction is subject to regulatory and corporate approvals and applicable sanctions laws and requires approval from relevant sanctions authorities, including OFSI,” Evraz said in a statement.
Evraz Plc, which bought a steel mill in Pueblo in 2007, was severely sanctioned by the UK in May in response to Russia’s invasion of Ukraine. The UK has frozen the assets of several individuals suspected of financially supporting Russian President Vladimir Putin.
Those sanctioned included Roman Abramovich, a Russian billionaire who owns more than 28% of EVRAZ PLC’s total shares.
Pueblo Chieftain news partner KRDO News Channel 13 reported Wednesday that it had obtained a letter from Evraz executives addressed to Evraz North America employees. He brings a unique set of challenges in day-to-day business operations.”
“However, we are in a position to change course,” the letter said, according to KRDO. “In response to today’s realities and to best position the organization for long-term success, ENA’s parent company, EVRAZ plc, has made the difficult decision to begin the sales process for its North American operations. did.”
EVRAZ North America is a wholly owned subsidiary of Evraz Plc, a public company incorporated under British law, Annie Stefanec, EVRAZ North America’s communications director, told The Chieftain in March.
The North American subsidiary operates independently in the United States and Canada in all areas, including raw material procurement, production facility operations and corporate financing, Stephanek said.
Headquartered in Chicago, Illinois, Evraz North America employs over 1,400 people in the United States and over 1,800 people in Canada.
EVRAZ North America has six production sites, including four in Pueblo, Portland, Oregon, and Canada, according to the company’s website.
The company is the largest North American producer in the rail and large diameter pipe markets.
Chieftain Editor Zach Hillstrom can be reached at zhillstrom@gannett.com or on Twitter @ZachHillstrom.
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