LTV Plans to Sell Tube Division
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CLEVELAND (AP) _ LTV Corp. plans to part with the remnants of its steel assets, selling one division and turning another into a stand-alone company.
LTV announced Wednesday that it will ask the bankruptcy court to allow it to sell LTV Steel Tubular while making Copperweld Steel a freestanding company. LTV earlier had planned to sell Copperweld Steel.
The two divisions make up LTV Copperweld and have remained profitable through the company’s bankruptcy.
``Clearly, we just felt the greatest value would be extracted if we reorganized it, rather than selling it,″ said Frank Filipovitz, LTV vice president of human resources.
LTV, once the nation’s third-largest steel company, filed for protection from creditors in December 2000. A year later, the company asked for permission to sell its assets.
The biggest, most well known LTV Steel mills were sold in February to WL Ross & Co. LLC and became International Steel Group Inc.
LTV said Wednesday it has agreed to sell LTV Steel Tubular to St. Louis-based Maverick Tube Corp. for $110 million in cash. The unit employs about 430 people at plants in Youngstown and Elyria; Ferndale, Mich.; Counce, Tenn.; and Cedar Springs, Ga.
Maverick president and chief executive Gregg Eisenberg said the sale is contingent on getting a labor deal with the United Steelworkers of America. He said there is no reason to assume the company will reduce the work force, though some managerial jobs from the Youngstown headquarters may be moved to St. Louis.
Copperweld Steel is based in Pittsburgh and produces wire and welded steel tubing at 17 plants in the United States and Canada. It employs about 3,300 people.
The plans remain subject to U.S. Bankruptcy Court approval where the case docket is jammed with creditors’ claims seeking payment from LTV.
``The reorganization of Copperweld as a standalone business will provide the greatest value to the greatest number of people, including our employees, customers, suppliers and creditors,″ said John Turner, chairman and chief executive of LTV Copperweld.
About 20 people remain at the LTV Corp. headquarters in the Cleveland suburb of Seven Hills to keep track of the company’s remaining assets. Glenn Moran, who was LTV Corp.’s chief executive when LTV Steel assets were sold to WL Ross, is still in charge.
On the Net:
LTV Corp. and bankruptcy docket: www.ltvsteel.com