Pueblo Steel Mill to Change Ownership Amid Exciting Developments
The Pueblo steel mill, operated by Evraz North America, is set to undergo a significant transition as Connecticut-based private equity firm Atlas Holdings has signed an agreement to acquire the North American operations of the steel manufacturer. This announcement comes after a lengthy process that began when Evraz started soliciting proposals three years ago. The deal marks an important milestone for the community, given that the mill is a major employer in Pueblo.
Mayor’s Optimistic Outlook
Pueblo Mayor Heather Graham expressed enthusiasm for the change in ownership, highlighting the city’s commitment to the future of Evraz North America. In a statement, she remarked, “The city of Pueblo has been very invested in the future of Evraz North America located here … so today’s news about Atlas Holdings’ purchase is exciting to welcome a new American owner to our steel mill.” She emphasized the mill’s role as one of the largest employers in the area, suggesting that this transition bodes well for economic prospects in Pueblo.
Investment and Future Prospects
The deal is valued at up to $500 million, as reported by The Wall Street Journal, with most payments deferred based on the business’s performance. The sale is anticipated to conclude in the latter half of the year, allowing Atlas Holdings an opportunity to revitalize the North American steel production landscape.
Atlas Holdings currently oversees more than 24 companies globally, employing over 57,000 individuals and generating approximately $18 billion annually. Sam Astor, an Atlas Partner, acknowledged the existing Evraz team’s efforts to maintain operations despite numerous challenges in the global steel market. He stated, “This is a major investment in creating a more vibrant domestic steel production industry right here in the United States and Canada.”
| Company | Employees | Annual Revenue |
|---|---|---|
| Evraz North America | 3,400 | N/A |
| Atlas Holdings | 57,000 | $18 billion |
Local and National Implications
Concerns surrounding the sale have been addressed, especially in light of sanctions imposed on Evraz’s largest shareholder, Russian oligarch Roman Abramovich, following the invasion of Ukraine. Despite these challenges, Evraz North America has operated independently since the sanctions began. The U.K. Office of Financial Sanctions Implementation has recently granted a license for the sale, while Canadian regulations must also be satisfied.
James “Skip” Herald, the president and CEO of Evraz North America, spoke positively about the future, stating, “This is an exciting new chapter for Evraz North America. It brings long-term opportunity for our people, our customers and the communities where we operate.” He highlighted the potential for innovation and operational strengthening that Atlas’s backing could provide.
Historical Context and Community Impact
Originally founded as Colorado Fuel & Iron in 1881, the Pueblo steel mill has been integral to the region’s economy, employing around 1,000 individuals and producing essential products such as railroad rails and pipes. After being acquired by Evraz in 2006, the mill has embarked on multiple initiatives to modernize its capabilities, including a multimillion-dollar long rail mill project powered by solar energy.
Colorado Governor Jared Polis and Eve Lieberman, the executive director of the Colorado Office of Economic Development and International Trade, underscore the sale’s potential benefits for Pueblo and the surrounding state, marking it as a significant step towards enhancing economic vitality in southern Colorado.
