YOUNGSTOWN, Ohio -- The North Star Steel Co. Monday completed its $22.5 million purchase of the bankrupt Hunt Energy Co., a move officials called symbolic of the progress being made to restore jobs to Youngstown.
Minneapolis-based North Star will refurbish the idled mini-mill over the next 18 to 24 months at an estimated cost of $80 million, and will eventually create 300 jobs.
The plant is designed to make steel seamless casings for oil and gas wells, and is expected to produce about 250,000 tons of casings per year.
'The event speaks for itself,' said Youngstown mayor Patrick Ungaro, one of about 150 city, state and business leaders who attended ceremonies at the plant Monday. 'It's for real.'
'We intend to be a permanent part of the revitalization of the area economy,' said North Star president Robert Garvey. 'We are proud to be a part of the cooperative spirit that is reviving the local economy.'
Only managers will be brought in from North Star's other steel plants, he said; the steelworking jobs will be filled by area residents.
North Star first made its offer to buy the Hunt plant only two months ago, and moved quickly through bankruptcy court proceedings in Cleveland to finalize the sale.
The cities of Youngstown and Girard, whose border the plant straddles, convinced the state to create enterprise zones which give North Star property tax abatements of between 50 and 100 percent.
Objections to the enterprise zones by the Youngstown Board of Education, which feared a loss of revenue to the schools, were overcome.
'The open-mindedness and cooperation of those community leaders ... is very encouraging to us,' Garvey said.
'The fact that this steel plant is idle and will reopen is symbolic of the progress in our valley,' said Gov. Richard Celeste, who also attended the ceremonies. 'It hasn't been often we get this kind of good news for Youngstown.'
'We're proud that such a viable company would select Youngstown,' said Girard Mayor Joseph Melfi. 'That alone will show the public that Youngstown is on the move.'
