Posted by wayne
on 8/7/2009, 4:53 pm, in reply to "Re: Mingo Junction Ohio"
You have to understand that the steel business, like the economy in general, is slow right now. However, just this week CSX moved some steel coil cars from storage and put them back in service so things might be improving.
--Previous Message--
:
: Why would anyone buy a mill that
: makes low grade sheet steel. Steel
: is easier to buy now than ever
: before. I would not be surprised if
: Severstal closes all their USA
: plants and goes back to Russia.
: --Previous Message--
: Are you serious? You may be
: dumbfounded about the shutdown of an
: outdated manufacturing facility
: during an economic crisis but I'm
: dumbfounded that you think a
: transportation company (ANY
: transportation company) could
: successfully operate a steel mill!
:
: Even if they wanted to, the W&LE
: does not have the capital to
: purchase the mill. The scrap value
: alone would push $100 million. If
: the W&LE had that type of money,
: it would be better spent
: establishing a new traffic base
: through the construction of a new
: line or connection. Not by
: purchasing an outdated manufacturing
: facility.
:
: History repeats itself. The country
: when through an economic downturn
: during the 1980's. (And that one
: was nowhere near as sever as this
: one!) During that time, many of the
: steel mills in Pittsburgh closed.
: For the most part, they were
: outdated facilities with expensive
: labor costs, high transportation
: costs, and a declining market share.
: If you're up for good reading, find
: the book "And The Wolf Finally
: Came". It details the decline
: of the steel industry in
: Pittsburgh's Mon Valley. There is a
: lot of similarity with today's Ohio
: Valley.
:
: W&LE buy a steel mill?
: DUMBFOUNDED!
:
: --Previous Message--
: As I sit here this Morning, still
: dumbfounded about the shutdown of
: Servestal at Mingo Junction and its
: effects on this railroad, why
: doesn't the WLE RR make a offer to
: purchase this mill, start it back up
: and start making steel again ?
:
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