More on Essar and a possible Hamilton deal

Reports are still circulating about Essar Steel Holdings wanting to buy U.S. Steel Canada's plants in Hamilton and Nanticoke.

An article in the Hamilton Spectator says Essar is indeed involved in the bidding process along with other companies, according to the Hamilton newspaper's sources.

When contacted last week by SooToday, Essar Steel Algoma spokesperson Brenda Stenta had no comment on the matter.

U.S. Steel Canada is currently under creditor protection.

A source quoted by the Spectator says Essar's bid is the only one for both Canadian plants, in Hamilton and Nanticoke.

Other bidders are interested in certain pieces of U.S. Steel Canada, such as its waterfront property.

It is thought ArcelorMittal Dofasco is interested in U.S. Steel Canada's coke ovens.

An Essar purchase of U.S. Steel Canada is being hoped for by municipal officials in Hamilton, including Hamilton Mayor Fred Eisenberger, members of Hamilton's city council and industry analysts, saying it would revive the city's steelmaking industry.

One analyst has estimated Essar's bid at approximately $400 million.

39 companies submitted expressions of interest in the U.S. Steel Canada facilities.

Firm bids were in July 24 and are being reviewed, and U.S. Steel Canada will pick certain bids to be recommended to court. 

U.S. Steel bought Stelco in 2007 with promises of jobs and ramped up production within three years but failed to keep those promises.

U.S. Steel Canada went into creditor protection last September and has been involved in a process to sell its Hamilton and Lake Erie facilities since January.

India-based Essar bought Algoma Steel in 2007 and recently received $60 million in federal and provincial funding toward $240 million in planned upgrades, to take place over the next seven years.