There is one less company vying for US Steel Canada.
The company has rejected a bid from Essar Global, the parent company of Essar Steel Algoma in Sault Ste. Marie.
Essar Steel Algoma last week signed a deal with a private equity firm for a sale of its assets to KPS Capital Partners.
KPS is one of the two firms still in the running to buy US Steel’s operations in Hamilton and Nanticoke, along with Bedrock Industries of New York.
The United Steelworkers is condemning US Steel Canada’s decision to eliminate Essar Global as a potential buyer.
The union’s Ontario director Marty Warren says “This is a potentially devastating decision for thousands of workers, pensioners and the communities that are most affected by the restructuring of our steel industry.”
He adds, “Essar Global has indicated it is more committed than other bidders to protect jobs, pensions and retiree benefits.”
Warren is calling on the provincial government to intervene.
US Steel Canada has been operating under creditor protection since 2014.