Roanoke Electric Steel (NASDAQ:RESC)
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Roanoke Electric Steel Corporation Announces Sale of Subsidiary
Assets
ROANOKE, Va., Jan. 27 /PRNewswire-FirstCall/ -- Roanoke Electric Steel
Corporation (NASDAQ:RESC) today reported that its subsidiary, RESCO Steel
Products Corporation ("RESCO"), had sold its reinforcing bar assets to
Rockingham Steel, Inc. ("Rockingham Steel"), a reinforcing bar fabricator
located in Harrisonburg, Virginia. Terms of the transaction were not
announced.
"RESCO is no longer a good strategic fit for us since Roanoke's mill operation
no longer produces reinforcing bars, which is RESCO's primary raw material,"
said T. Joe Crawford, President and COO of Roanoke Electric Steel Corporation.
"However, Rockingham Steel will be a good fit for RESCO, since rebar
fabrication is its primary business. Rockingham Steel will improve the long
term viability of the operation in Salem."
Founded in 1986, RESCO fabricates steel reinforcing bars and employed 44 people
prior to the sale. Rockingham Steel will offer jobs to the majority of the
employees at the Salem operation. "Roanoke Electric Steel Corporation will
provide a severance package and potential employment to the remaining
employees," said Crawford.
Roanoke Electric Steel Corporation has steel manufacturing facilities in
Roanoke, Virginia, and Huntington, West Virginia, producing angles, rounds,
flats, channels, beams, special sections and billets, which are sold to steel
service centers, fabricators, original equipment manufacturers and other steel
producers. Four subsidiaries are involved in various steel-related activities,
consisting of scrap processing and bar joist, and truck trailer beam
fabrication.
This release contains various forward-looking statements which represent the
Company's expectations or beliefs concerning future events. In accordance with
the safe harbor provisions of the securities laws regarding such statements,
the Company notes that a variety of factors, including economic and industry
conditions, availability and prices of utilities, supplies and raw materials,
prices of steel products, foreign and domestic competition, trade policies
affecting imports and exports, governmental regulations, interest rates,
inflation, labor relations, environmental concerns and compliance issues and
other maters, could cause actual results and experience to differ materially
from those expressed in the forward-looking statements.
DATASOURCE: Roanoke Electric Steel Corporation
CONTACT: Mark G. Meikle or William M. Watson, Jr. of Roanoke Electric
Steel Corporation, +1-540-342-1831
Web site: http://www.roanokesteel.com/