Pueblo Steel Mill to Change Ownership
The steel mill in Pueblo, renowned as North America’s largest rail supplier and a significant employer in the region, is slated for a change in ownership as its current operator prepares to sell its North American operations. The announcement came Friday as Connecticut-based private equity firm Atlas Holdings entered into an agreement to acquire the North American subsidiaries of Evraz, an international steelmaker that has faced turmoil due to ongoing global events.
Details of the Acquisition
Atlas Holdings’ acquisition follows Evraz’s previous announcement three years ago to explore options for its North American division. Mayor Heather Graham of Pueblo expressed optimism regarding the sale, stating, “The city of Pueblo has been very invested in the future of Evraz North America… so today’s news about Atlas Holdings’ purchase is exciting to welcome a new American owner to our steel mill.”
The financial terms of the deal indicate that Atlas Holdings is prepared to pay up to $500 million, largely contingent on the operational success of the business. The transaction is anticipated to finalize in the latter part of this year. Atlas Holdings, alongside its affiliates, oversees over 24 companies with a workforce exceeding 57,000, generating approximately $18 billion in annual revenue worldwide.
Impact on the Community and Industry
Evraz North America’s operations span across the United States and Canada, employing about 3,400 individuals and producing critical steel products, including railroad tracks, line pipes, and various industrial products. Sam Astor, an Atlas partner, highlighted the resilience displayed by the Evraz team, stating, “Despite the global dynamics of the steel market and unique challenges facing the business, the Evraz team has continued to drive the business forward.”
The geopolitical climate has posed significant challenges for Evraz, especially following sanctions placed on its largest shareholder, Russian oligarch Roman Abramovich, by several nations in response to the invasion of Ukraine. These sanctions led to a suspension of stock trading for Evraz in the U.K. in March 2022.
Looking Forward
In a recent statement, James “Skip” Herald, president and CEO of Evraz North America, expressed encouragement regarding the acquisition, noting, “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 emphasized that with the backing of Atlas, the company would be positioned to accelerate innovation and enhance operational efficacy.
Colorado Governor Jared Polis and other state officials have also welcomed the sale as a beneficial move for Pueblo and the wider Colorado economy. “Evraz North America is a key contributor to the Pueblo economy… supporting thousands of jobs for Coloradans,” added Eve Lieberman from the Colorado Office of Economic Development.
Historical Significance
Originally founded as Colorado Fuel & Iron in 1881, the Pueblo steel mill has been a cornerstone of the local economy, with around 1,000 employees engaged in the manufacture of a range of steel products. In 2006, Evraz acquired the facility from Oregon Steel Mills, and in recent years, the mill has embarked on substantial projects, including a multimillion-dollar solar energy-powered rail mill initiative.
| Category | Details |
|---|---|
| Owner | Atlas Holdings |
| Estimated Purchase Price | Up to $500 million |
| Employees | 3,400 across U.S. and Canada |
| Founded | 1881 |
| Key Products | Railroad tracks, line pipe, industrial products |
