Nu-Iron withdraws bid for steel plant

Nu-Iron Unlimited withdrew its US$20 million bid for the former Arcelor Mittal steel plant on Friday because of bureaucratic hold ups, Newsday has learnt.

A source told Newsday the company, which had been waiting on approval from the Ministry of Finance for a foreign investor licence, had finally got fed up of being asked to provide "assurances" to the state.

The plant, located in the Point Lisas Industrial Port Development Corporation (Plipdeco), was shuttered in March 2016 and put in liquidation. Newsday contacted the liquidator, Christopher Kelshall, who declined to confirm or deny the news, instead saying to call him later. He had previously admitted to the Newsday that the bid had been held up because the government agencies handling approvals had been putting Nu-Iron "through the ringer." Finance Minister Colm Imbert declined to comment.

The bid period closed at the end of September. Nu-Iron won the bid, but the lock-out period, preventing other bids, kept being extended to facilitate the approval process. After five extensions, it finally ended on Friday. Nu-Iron's parent company, US-based Nucor, did not respond to Newsday's request for comment.

Another company, Macarri Steel Holdings Ltd, in April, made a US $27 million bid to purchase the plant but had not been entertained since the official bid period had already closed.

One of Macarri’s directors, TT businessman Unanan Persad, said Macarri is now hoping it gets to bid, creating employment for former workers, some of whom are still unemployed since the Arcelor plant closed.

“I heard (Nu-Iron withdrew) but I cannot confirm it. He (the liquidator) could go out for bids again or probably choose us, I don’t know. The ball is in the liquidator’s court. He is the one to make the decision.”

President of the Steel Workers Union of TT (SWUTT) Christopher Henry said he also heard the report of the withdrawal but is yet to confirm it.

“It is speculation at this time. If it is true, we are asking the Government to get involved and ensure that Macarri Steel is the preferred purchaser. They are offering the workers their jobs back, as well as to build three more plants,” Henry said.

Last week Henry appealed to the Finance Minister and by extension the Government to intervene and meet with SWUTT to ensure the bidding process reopens in favour of Macarri.