Three coke batteries have been put on hot idle at Mountain State Carbon LLC, and about 200 unionized workers at the joint venture of RG Steel LLC and Severstal North America Inc. are being laid off, according to a local union official, as reported by AMM. All of the workers affected are employees of Sparrows Point, Md.-based RG Steel, which filed for bankruptcy 31 May, the official said. Hot idling three of the facility’s four coke batteries will allow Mountain State Carbon to bring them back online, he said, although he did not know when the company would do so.

"Severstal continues to receive coke from Mountain State Carbon without interruption," a company spokeswoman said early in the week. "Also, Severstal previously had entered into a coal processing agreement with Mountain State Carbon which allows Mountain State Carbon to operate at higher production rates and ensures a steady supply of coke to our Dearborn plant."

The spokeswoman was unable to say late Friday whether Severstal was still receiving coke, but the union official said that all the coke from the remaining battery would go to Severstal.

The two companies had previously shared coke output from the Follansbee, W.Va., facility for use in their blast furnaces, but more recently they have been embroiled in litigation. Prior to the bankruptcy filing, a West Virginia judge issued an injunction restricting RG Steel from taking any more coke from the 50-50 joint venture. Since then, the state court has left it up to the U.S. Bankruptcy Court in Delaware on whether to continue that order.

RG Steel chief operating officer Mark Whalen has said that the company is looking for buyers for all of its facilities, either in part or together. Scrap processor Herman Strauss Inc. has offered RG Steel US$15 million for its idled Steubenville, Ohio, facility, and Esmark Steel Group LLC has submitted an offer for Wheeling Corrugating Co.

"Severstal has every intention to continue protecting Mountain State Carbon and Severstal’s interests in this joint venture," the Severstal spokeswoman said, when asked what Severstal’s plans would be should RG Steel exit the venture.

RG Steel’s bankruptcy filing does not include Mountain State Carbon or Ohio Coatings, RG Steel’s 50-50 partnership with Seoul-based TCC Steel Co.