Group to Build Rebar Project in Mississippi.
 
Tuesday, January 30, 2007
By Sam Kusic

PITTSBURGH - A group of steel industry veterans is forming a business to run a long products mill in Mississippi, the financial advisory firm behind the project said Tuesday.

The group is made up of experienced long products operators and steel industry executives, according to David Stickler, senior managing director of Global Principal Partners LLC. He declined to identify the people involved or the name of the company.

Stickler said the vast majority of the mill's production will be dedicated to rebar, but he declined to be more specific. According to local newspaper reports, however, the $110-million project, dubbed "Project Green," will make 220,000 tons of rebar annually to serve customers in a 300 -mile radius, including the Mississippi Gulf Coast damaged in the 2005 hurricanes as well as Nashville, Tenn., and Atlanta.

The mill originally was to have been built in Lowndes County, Miss., on a 90-acre site near the SeverCorr LLC plant. However, a dispute over county-level business incentives has arisen, throwing the site selection into question.

Stickler said the dispute has forced the company to "change its level of focus" in its selection. He said the group expects to pick a site by the end of February, if not sooner.

Although the mill might be located near the SeverCorr mill and although Global Principal is behind the financing on both projects, the rebar mill is not connected to SeverCorr, Stickler said. A SeverCorr executive also said the project is not connected to SeverCorr.

However, there is market speculation that some of the people who founded SeverCorr might be behind the rebar mill. Another source said he had heard that a former Chaparral Steel Co. manager also might be involved.

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