Published Monday, Oct. 26, 1998 The steel company has been holding talks with Duferco, a foreign concern. No information about that company was immediately available.
It wasn't known where those negotiations stand.
Anthony "Tony" Kurley Jr., president of Caparo, would not confirm or deny the negotiations this morning.
Farrell Mayor Eugene C. Pacsi said this morning he was told by "a friend'' who he wouldn't identify that the mill had been sold. But Pacsi said he couldn't confirm that.
"What does that mean?'' Pacsi asked rhetorically. "We're trying to find out this morning. We'll find out a little more as we go on today.''
Pennsylvania Industrial Development Authority, a state finance agency; the state Department of Environmental Protection; Shenango Valley Industrial Development Authority, a local non-profit developer; and the city would be key players in any deal involving the mill. The groups hold first lien on the buildings and land at the mill as they have loaned Caparo more than $4 million.
Caparo Group, a British company owned by Swraj Paul, bought much of the former Sharon Steel Corp. mill in December 1994 through his American company, Caparo Inc., for $26 million. Caparo was the winning bidder for the mill at a bankruptcy auction.
Sharon Steel filed for bankruptcy on Nov. 30, 1992, and closed the mill earlier that month. Before closing the mill, Sharon Steel employed 2,700.
When Caparo restarted the mill in April 1995, it had expected to employ 400. But due to higher than expected start-up costs and a poor steel climate, that level was never met. Caparo now employs about 100.
In February 1996, Caparo and its owner, Swraj Paul, unveiled a $150-million plan to modernize the mill. But the company said it was never able to secure suitable financing for the project.
