RG Steel LLC announced that affiliates of Cerberus Capital Management LP and The Renco Group Inc have committed to provide it with significant new capital that substantially improves its liquidity and provides the necessary financial strength.

RG, which made the announcement the day after saying it was restarting the L blast furnace at its Sparrows Point, mill after a cash crunch, noted that steel prices declined sharply shortly after the company's formation in March 2011.

Combined with what the company called unprecedented increases in raw material costs, the lower prices strained liquidity at an early stage in the company's formation.

Mr V John Goodwin president & CEO of RG Steel said that "With this new capital in place and improving market conditions, RG Steel is well positioned to service its customers now and in the future. We emerge from this challenging period a stronger company dedicated to producing products of exceptional quality and providing superior customer service."

RG's steel mill in Warren remained operating during the Sparrows Point furnace shutdown that began December 22nd 2011.

Cerberus COO Mr Mark Neporent said that the private investment firm is pleased to provide capital which will help support RG Steel, an important company which is integral to one of America's key strategic industries.

(Sourced from www.tribtoday.com)