After months of backroom discussions, the United Steelworkers now want Renco Group Inc to purchase the former Wheeling Pittsburgh Steel plants from OAO Severstal.

With several hundred local workers still laid off from Severstal Wheeling, including those employed at the Steubenville and Mingo Junction plants, which have been shuttered for nearly two years, the possible sale to the New York City based group could breathe new life into the area's steel industry.

A source familiar with the negotiations said that steel union officials voted to give Renco the right to bid provision to buy the plants. Union leaders previously invoked this rule to allow Esmark to acquire Wheeling Pitt in 2006, and also to give favor to Severstal in its bidding war for the plants against Essar Group in 2008.

Reports initially emerged last summer that Russian steelmaker Severstal wanted to sell the former Wheeling Pitt facilities, along with operations in Warren, Ohio, and Sparrows Point as a package. Local facilities now owned by Severstal include these plants Mountain State Carbon, which is also known as the Follansbee coke plant; Yorkville; Martins Ferry; Wheeling Corrugating in Beech Bottom; Mingo Junction and Steubenville.

Renco is a private, family owned investment holding company that began in 1975. According to the company's website, Renco has long term interests in leading companies in the mining, mineral recovery, metals production fabrication, defense and automotive supply industries."

The information also notes that "Our affiliated operating companies are united in their commitment to environmental responsibility, to ensuring the health and safety of their employees, and to respecting and protecting the communities in which they operate."

A Renco spokesman said that he was aware of the negotiations but would be unable to provide further comment on the matter.

The local source said union officials elected to support Renco, rather than Optima Fund Management.

(Sourced from www.theintelligencer.net)