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Bankrupt National Steel sold

Thursday, Jan. 9, 2003 | 10:10 a.m.

PITTSBURGH -- U.S. Steel Corp., the nation's largest steel maker, said today it will purchase bankrupt National Steel Corp. for about $750 million.

Under the deal, U.S. Steel would also assume about $200 million of its smaller rival's debt.

U.S. Steel could increase production capacity by as much as 40 percent and expects a combined annual cost savings of about $170 million within two years of purchase, company officials said. Savings will come from a reduction in redundant overhead, transportation costs and an improved labor contract, company officials said.

Pivotal to the deal, expected to close in the second quarter, is an agreement with the United Steelworkers of America. The union contract expires in 2004.

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