Leggett & Platt enters the Steel Making Business with Acquisition of Former Northwestern Steel & Wire Mill

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Leggett & Platt Incorporated (NYSE:LEG) (Carthage, Missouri) has made its first venture into the steel making business with the acquisition of a portion of the former Northwestern Steel & Wire property located in Sterling, Illinois. Northwestern Steel filed for bankruptcy protection in December of 2000 and had to close down the 2.4 million ton per year steel mill last year.

The 700 acre property and plant building and equipment were liquidated with Leggett & Platt picking up about 145 acres including the meltshop, caster, and rod mill for the low auction price of $4.4 million.

The new Leggett & Platt venture will be known as Sterling Steel Company LLC. They will spend about $25 million to refurbish the rod mill, equipment, and associated buildings.

Rod mill operations are expected to start in early 2003. Sterling Steel will be Leggett & Platt's first venture into steel making. Rod mill production from the minimill will be dedicated to downstream Leggett & Platt steel wire making and fabrication plants across the U.S.