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Renco Group's subsidiary to acquire three steel companies controlled by Russia’s OAO Severstal

Renco Group Inc’s newly formed, wholly owned subsidiary, RG Steel LLC, is to acquire three steel companies currently controlled by Russian-based OAO Severstal through its U.S. subsidiary, Severstal US Holdings LLC. The transaction, estimated at $1.2 billion, will make RG Steel the fourth-largest flat rolled steel producer in the United States.

Under the terms of the transaction, RG Steel is to purchase all of the stock of Severstal Sparrows Point LLC based in Baltimore, Maryland; Severstal Warren LLC, based in Warren, Ohio and Severstal Wheeling Inc. and Wheeling Corrugating Company, both based in Wheeling, West Virginia.

Additionally, RG Steel will acquire a 50 per cent ownership interest in Mountain State Carbon LLC, a coke making facility in Follansbee, West Virginia, and Ohio Coatings Company, based in Yorkville, Ohio. RG Steel will receive one half of the coke output from Mountain State Carbon and will continue its long-standing relationship with Ohio Coatings Company. The purchase of these assets will provide RG Steel with approximately 7.5 million tons of annualized steelmaking capacity.

Ari Rennert, President of The Renco Group, Inc., commented that the formation of RG Steel will create a dynamic, service-oriented company with strategically located facilities led by newly appointed President and Chief Executive Officer, John Goodwin, and a team of seasoned steel industry veterans.

Mr. Goodwin joins RG Steel with more than four decades of high-level steel industry leadership experience, including senior executive positions with U.S. Steel, National Steel, Beta Steel and Wheeling Pittsburgh Steel and is widely regarded as one of the industry's leaders in steel operations and commercial strategies.

Mr. Goodwin commented that the firm is looking forward to working with existing and future customers to establish the RG Steel brand as one synonymous with excellence in quality and service in the steel industry.

OAO Severstal is an international steel and mining company with a listing on the Russian Trading System, Moscow Interbank Currency Exchange and the London Stock Exchange. The company focuses on high value added and unique niche products and operates high quality assets in Russia, North America and Europe.

The Renco Group, Inc. is a private, family-owned investment holding company based in New York. It is a global leader within a diverse range of businesses including mining and mineral recovery, defense equipment, fabrication of metal products and automotive supply. Renco has more than $5 billion in portfolio company revenues and 15,000 portfolio employees world-wide.

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