Russia-based steel producer is accepting offers for its facilities in North America.
The London-based Evraz plc subsidiary of Moscow-based Evraz has announced it is in the process of soliciting proposals for the acquisition of its Evraz North American subsidiaries.
The company says the sale will allow it to “unlock the stand-alone value of the North America business,” acknowledging global sanctions on Russian companies by saying the sale “will require approval from relevant sanctions authorities,” including the United Kingdom’s Office of Financial Sanctions Implementation (OFSI).
Evraz plc says the solicitation process is currently being conducted under an OFSI general license, “and we are in contact with OFSI as part of this process.” Beyond that, the steel producer adds, “Evraz does not intend to provide any additional information on this process unless or until the process is finalized.”
The steelmaker describes Evraz North America as a vertically integrated producer of engineered steel products for the North American rail, energy, industrial and construction markets. It has annual crude steelmaking capacity of 2.3 million tons and finished steel (such as rail or tubular products) capacity of 3.5 million tons.
The company operates two electric arc furnace (EAF) mills, one in Pueblo, Colorado, and the other in Regina, Saskatchewan, Canada. Just last year, Evraz announced a significant investment project for the Regina rail mill. It also idled a melt shop in Portland, Oregon, several years ago.
Evraz also operates four downstream rolling mills, eight downstream tube mills, and 17 scrap recycling facilities in North America, with its website indicating the scrap yards are in Colorado and North Dakota in the United States and in Alberta, Manitoba and Saskatchewan in Canada.
A class action lawsuit alleges the containerboard manufacturer's paper mill in Catawba, South Carolina, is causing "harmful emissions that have continued to produce a foul odor and cause numerous health issues."
A judge has denied a motion to dismiss a lawsuit filed against New-Indy Containerboard's paper mill in Catawba, South Carolina, while also denying the company's request to dismiss the suit altogether.
A class action lawsuit alleges the facility is emitting a foul odor, causing numerous health issues for the citizens of surrounding communities. According to WCNC Charlotte, residents have reported headaches, nausea, skin and eye irritation beginning as early as March 2021, with the South Carolina Department of Health and Environmental Control (DHEC) receiving more than 17,000 complaints.
According to U.S. District Court Judge Sherri A. Lydon's order issued Aug. 5, plaintiffs “plausibly stated their private nuisance and negligence and gross negligence claims” against the Ontario, California-based corrugated box, recycled containerboard and virgin linerboard manufacturer.
Attorneys representing the plaintiffs say in a statement, “We are pleased with Judge Lydon’s decision denying New-Indy Containerboard’s motion to dismiss. As alleged in the complaint, New-Indy’s harmful emissions have continued to produce a foul odor and cause numerous health issues for the citizens of surrounding communities.”
The statement continues, “We look forward to continuing the fight to hold New-Indy accountable and help restore quality of life for those affected by the papermill’s [sic] careless operation.”
New-Indy acquired Canada-based Resolute Forest Products’ Catawba paper and pulp mill in 2018. According to New-Indy, the acquisition established a diverse and efficient mill operation with the production of market pulp, lightweight coated papers and specialty grades. The virgin linerboard and market pulp manufacturing mill in Catawba is furnished 100 percent with wood chips.
WCNC says attorneys allege complaints of a foul odor began in 2020 after the facility converted the mill from producing bleached paper to produce containerboard.
The South Carolina DHEC previously fined the Catawba facility $120,000 and is requiring New-Indy to clean up two parts of the mill deemed to be contributing to the odor and symptom-causing fumes, according to WBTV in Charlotte.
The company is required to clean those areas by 2023 and 2026, respectively.
New-Indy says after restarting the manufacturing process after the conversion of the mill in 2020, it was discovered that excess solids had been sent to the wastewater treatment system and that the system had been minimally maintained by the mill's prior owners, the extent of which New-Indy says did not become clear until after resuming operations. This resulted in higher-than-normal hydrogen sulfide emissions from the wastewater treatment system.
The company says since March 2021 it has taken many steps to improve air quality and reduce hydrogen sulfide emissions that affect the surrounding communities, a timeline of which can be found here.
The company says Doty Sanitation's market share across residential, commercial and roll-off collections will drive growth and expansion in Illinois.
LRS, an independent waste diversion, recycling and portable services provider based in Rosemont, Illinois, has acquired Beecher City, Illinois-based Doty Sanitation, a provider of residential, commercial and roll-off collection services in central Illinois. Financial terms were not disclosed and the acquisition is effective immediately.
According to a news release from LRS, DOTY was founded in 1980, with one truck and an employee by Daniel Doty Sr. Now, Doty Sanitation is led by David and Nicole Doty. The company's service footprint stretches across central Illinois, from Pocahontas to Arcola, and will serve as a platform for continued growth for LRS.
"We are thrilled to enter into this new chapter with LRS, where our careers will continue here in central Illinois," David Doty says. "From our people to our fleet and our loyal customers over the decades, Doty Sanitation is proud to now be a part of the LRS legacy."
LRS President and CEO Alan T. Handley says Doty was the epitome of an ideal partner, ot just for Doty's business success through the years, but also in terms of the meaningful acquisition of career paths and family legacies that endure at LRS postacquisition.
"We are excited to welcome Dave, Nicole and all Doty Sanitation employees to the LRS family as we honor and pay tribute to Daniel Doty and the family legacy he established over decades of hard work," Handley says. "Doty Sanitation has built a strong customer following, earned a reputation for safe and reliable delivery service, and adds an outstanding fleet of well-maintained collection and roll-off trucks."
The acquisition of Doty Sanitation is LRS' ninth to date in 2022. Other announcements include Stillwater, Minnesota- based AirFresh Industries; Warsaw, Indiana-based JL Hurt; Grayslake, Illinois-based Lakes Disposal; Portage, Wisconsin-based The Country Plumber; Topeka, Kansas-based Ditch & Associates; Rochester, Minnesota-based Sunshine Sanitation; Chicago-based Auburn Disposal; and South Bend, Indiana-based Junoll Services.
The bill provides $52 billion in grants and other incentives for the semiconductor industry and a 25 percent tax credit for companies that build chip plants.
President Joe Biden recently signed into law the CHIPS and Science Act, a multibillion-dollar bill aimed at boosting domestic computer chip manufacturing. The Biden administration also has announced new initiatives to assist with the bill.
“It will strengthen American manufacturing, supply chains and national security and invest in research and development, science and technology and the workforce of the future to keep the United States the leader in the industries of tomorrow,” the White House said in a statement. “The CHIPs and Science Act makes the smart investments so that Americans can compete in and win the future.”
The bill’s full name is the Creating Helpful Incentives to Produce Semiconductors for America Act. According to its language, companies in the semiconductor industry will receive $52 billion in grants and other incentives and a 25 percent tax credit for those companies that build chip plants in the U.S. The chips could be used for vehicles, robotics and computers. Additionally, the bill gives about $200 billion to enhance scientific research.
“[The CHIPS Act] will accelerate the manufacturing of semiconductors in America, lowering prices on everything from cars to dishwashers,” Biden said in a statement. “It also will create jobs – good-paying jobs right here in the United States. It will mean more resilient American supply chains, so we are never so reliant on foreign countries for the critical technologies that we need for American consumers and national security.”
Broken down, CHIPS will provide $39 billion in manufacturing incentives, including $2 billion for the legacy chips used in automobiles and defense systems, $13.2 billion in research and development and workforce development and $500 million to provide for international information communications technology security and semiconductor supply chain activities.
In conjunction with the signing of the bill, the Biden administration has announced the launch of a sector-specific interagency expert working group on permitting and permitting-related project delivery issues for high-tech manufacturing. This group will build on the interagency CHIPS and Science Act planning to date between the Council on Environmental Quality, Environmental Protection Agency and the Department of Commerce.
As a result of the law's passage, companies have announced technology investments in the country. Micron, Boise, Idaho, is announcing a $40 billion investment in memory chip manufacturing, critical for computers and electronic devices, which will create up to 40,000 new jobs in construction and manufacturing. Qualcomm, San Diego, and GlobalFoundries are announcing a new partnership that includes $4.2 billion to manufacture chips in an expansion of GlobalFoundries’ upstate New York facility.
Previously, technology manufacturer Intel, based in Santa Clara, California, has said if the act passes, it will increase the spending on its microchip facility in Licking County, Ohio, from $20 billion to $100 billion.
The bill has garnered support from associations like the National Waste Recycling Association (NWRA). Recently, the organization signed a letter with 10 other organizations urging congress to consider the act.
“Technology in the waste industry is rapidly advancing,” says NWRA President and CEO Darrell Smith. ”Our member companies depend on a reliable supply of computer chips for trucks and other equipment. We urge Congress to pass this important legislation quickly.”
The letter says semiconductors are essential to nearly every sector of the economy, including waste and recycling, aerospace, automobiles, communications, clean energy, information technology and medical devices. Unfortunately, demand for semiconductors has outstripped supply, partly because of shifts arising from the COVID-19 pandemic.
The NWRA says this has created a global chip shortage and resulted in backlogs for orders of new waste and recycling industry vehicles and equipment. The lost growth and jobs across all industries resulting from the shortage have underscored the need for increased domestic manufacturing capacity that this legislation seeks to address.
Steel output globally and in the U.S. is dropping, and scrap prices are falling again in August.
Although employment numbers have been positive in the United States, steel output is drifting downward, and the ferrous scrap market is a victim of the demand slump.
The most recent steel output figures from the Washington-based American Iron and Steel Institute (AISI), for the first week of August, show raw steel production in the U.S. of 1.723 million tons. That is down 0.2 percent from the prior week but marks a more noticeable 7.8 percent decrease compared with the comparable week one year ago.
In the week ending Aug. 6, mills in the U.S. operated at a capability utilization (capacity) rate of 78.2 percent. That is down from 78.4 percent the prior week and a healthier 84.7 percent one year ago.
According to AISI, year-to-date output through Aug. 6 stood at 54.47 million tons. That is down 3.1 percent from the 56.22 million tons produced last year through Aug. 6.
Globally, the Brussels-based World Steel Association (Worldsteel) has aggregated first-half 2022 steel output figures from 64 different nations. Nine of the 10 largest steelmaking nations produced less steel in the first half of this year compared with last year, with India being the lone exception.
In the first half of this year, mills in the 64 nations combined to produced 5.5 percent less steel than in the first half of 2021. By volume, China’s 6.5 percent decline comprises a sizable portion of that. By national percentage, Iran’s decline of 10.8 percent and Russia’s of 7.2 percent exceed that of China.
Turkey, a major buyer of ferrous scrap exported from the U.S., made 4.6 percent less steel in this year’s first half compared with the first half of 2021. That circumstance, combined with reduced domestic demand, has helped drive down U.S. ferrous scrap prices in the late spring and into the summer.
Scrap price tracking service Davis Index says early August domestic ferrous scrap trading “concluded with a downward trend of $70 per ton” on prime grades throughout the U.S. The metals information service says mill buyers in Ohio and other regions “reduced their buying drastically” during early August.
Davis Index has shredded and heavy melting steel (HMS) grades moving down from $20 to $30 per ton in the early August buying period, again citing limited buying programs by mills in many regions.
Shredded scrap and even prime grades are now selling for below $400 per ton in parts of the U.S., which would bring their pricing down to a level not seen since the depths of the COVID-19-related slowdown.
Reductions in August follow previous drops in July, when the Raw Material Data Aggregation Service (RMDAS) price tracking performed by Pittsburgh-based MSA showed prompt grades losing a whopping $150 per ton in value. The obsolete shredded and HMS grades, meanwhile, fell by about $35 to $40 on average nationally.