Case | HBS Case Collection | February 2003 (Revised January 2004)

International Steel Group

by Paul W. Marshall and Todd H Thedinga

Abstract

Profiles veteran investor Wilbur L. Ross, Jr.'s plan to turn around the aging steel assets of LTV, formerly America's second largest integrated steel producer. Purchasing several key assets from LTV under Section 363 of the Bankruptcy Code, Ross is able to acquire the assets free of any pension or healthcare liabilities to retirees. Examines the challenges Ross faces as he tries to make the reborn steel company into a global player as one of the world's lowest cost producers. To accomplish this, he must negotiate a new agreement with the steelworkers' union, transform the old LTV culture, and secure long-term contracts with the right customers who could fulfill ISG's capacity requirements.

Keywords: Corporate Entrepreneurship; Strategic Planning; Lawfulness; Labor Unions; Organizational Culture; Agreements and Arrangements; Global Strategy; Assets; Steel Industry; United States;

Citation:

Marshall, Paul W., and Todd H Thedinga. "International Steel Group." Harvard Business School Case 803-162, February 2003. (Revised January 2004.)