The steel mill in Pueblo is likely to change hands later this year in a $500 million deal announced Friday between private-equity firm Atlas Holdings and current owner EVRAZ North America
About 1,000 people work at the Pueblo facility, which is a primary manufacturer of rails for train tracks and other products. It uses almost entirely scrap metal. According to the announcement, it is the largest solar powered steel mill in the world.
Atlas Holdings and its affiliates own and operate more than two dozen companies with more than 57,000 employees worldwide, generating approximately $18 billion annually, according to a press release announcing the deal.
“Our approach is straightforward and consistent: we invest in industrial businesses for the long term and provide the capital and leadership expertise to grow those companies and ensure success,” Atlas partner Sam Astor said. “This a major investment in creating a more vibrant domestic steel production industry right here in the United States and Canada.”
EVRAZ NA was put up for sale a few years ago. During that time there were contract disputes with the contractor building a new mill designed to produce long rails and OSHA violations. Also, the company has ties to sanctioned Russian oligarch Roman Abramovich.
“Atlas shares our belief that a strong future starts with investing in the people who make it happen,” James ‘Skip’ Herald, president and chief executive officer of EVRAZ North America said. “Their strategic approach and track record of operational investment make them the right partner for our next chapter… Most importantly, this partnership ensures a bright and stable path forward for our teams across the U.S. and Canada.”
Pueblo has a long history of steelmaking at the facility on the south side of the city. Once the largest employer in the West, the mill has been through booms and busts since it first opened in the late 1800s.
"The City of Pueblo has been very invested in the future of EVRAZ North America located here in Pueblo,” Pueblo Mayor Heather Graham said in a written statement. “So today's news about Atlas Holdings' purchase is exciting to welcome a new American owner to our steel mill. This is great news for the future of our mill, and our community, with the steel mill being one of the largest employers in Pueblo."
EVRAZ NA employs about 3,400 individuals in the U.S. and Canada.
Atlas Holdings was founded in 2002. Steel produced by its companies went into the construction of 1 World Trade Center and the Frederick Douglass Memorial Bridge in Washington.
“This sale is good for Pueblo and good for Colorado,” Gov. Jared Polis said in a written statement. “I met with Atlas leadership and was assured that both new jobs and the expansion efforts will continue at the plant.”
The sale is subject to a pre-closing reorganization and other conditions.
