MINGO JUNCTION –The Frontier Group confirmed Thursday it has sold a portion of the former RG Steel plant in Mingo Junction to a firm known as ACERO Junction, with a view to the potential restart of operations there by the end of the year.

Rumors of the pending sale have been circulating for months, especially after contractors were hired to prepare the 80-inch rolling mill for operations, and water and electricity service to the plant resumed.

The announcement was made by Frontier Group CEO David Franjoine. The terms of the sale were not disclosed.

ACERO Junction filed its corporation papers with the Ohio Secretary of State in July. The newly formed company is reported to be a consortium of established steelmakers.

Mingo Junction Mayor Ed Fithen said the announcement is an early Christmas present for the village.

“I’ve always said there was light at the end of the tunnel. This is just the beginning of it. It is good news and keeps our hopes alive,” Fithen said.

Jefferson County Commissioner Thomas Graham said the sale announcement is a “huge boost to the village of Mingo Junction as well as Jefferson County.”

“I hope they employ many people. I’ve heard 200 to 300. People have been hearing talk and rumors for some time. The news coming to fruition is great news,” Graham said.

Village Councilman Michael Herrick said the village has been financially suffering since the closing of the steel plant.

“People have been waiting and hoping for this to happen. It is a great thing for our town. It will be a boost to our economy, depending on the number of workers,” Herrick said. “Hopefully, down the road, it will take some burden off our taxpayers.”

The Mingo Junction facility, the largest of the former Wheeling-Pittsburgh Steel Corp. plants, still contains a modern $115 million electric arc furnace that was installed in 2004.

However, workers have not produced any steel at the plant since its 2009 idling while under the ownership of OAO Severstal.

Ownership passed to RG Steel, which declared bankruptcy, and the Buffalo-based Frontier purchased the entire Mingo Junction facility — including its electric arc furnace — for $20 million in 2012. Frontier has since demolished most of the northern part of the plant.

The company reported its plans called for demolishing the antiquated steelmaking facilities, preserving the modern steelmaking equipment and redeveloping the site. The area offers more than 250 acres of flat land.

“Our goal was always to improve the site and find a viable buyer for the steel making assets at Mingo,” Franjoine said. “Today, we can proudly say we accomplished our goal. The idle plant will see new life as steelmaking operations come back to this area of Ohio. This is an exciting time as jobs and commerce come back to the part of Ohio hit hard by the slowdown in domestic steel production. ACERO Junction is making a significant investment to bring the Mingo Junction steel plant back online.”

Mingo Junction Councilwoman Jodilynn Fitzgerald echoed that optimism.

“This is wonderful news. I am so thrilled for the people of the village. I can’t wait to see workers with lunchboxes walking up the steps (to the mill),” she said.

Fitzgerald said revenue from the mill in the form of income taxes and water sold will hopefully help the village out of the financial strain on the budget. She said the extra revenue will help the village keep and hopefully expand services to residents. She said the village had to cut its work force when the mill closed. Fitzgerald said the service department needs extra workers.

“It won’t take place immediately but, hopefully, we will get people back to work for the village,” she said.

Village Councilman George Irvin added, “This shows a spark of new life and a bright future on the horizon for Mingo.”

Irvin said the village looks forward to working with any other future developers. He said the workers at the mill will also spur more businesses to open in the village.

Ed Looman, eastern Ohio project manager for Appalachian Partnership For Economic Growth, said, “It is a positive announcement for the area and, hopefully, we can work with the new owners to make something happen. It is positive they got the sale wrapped up.”

Evan Scurti, Jefferson County Port Authority executive director, said he, Looman and other economic development officials have been meeting with Frontier and ACERO Junction for some time trying to get the deal worked out and possible financial incentives.

“We will use this to build on for more economic development in the county,” Scurti said.

Frontier officials said various economic development agencies including Jobs Ohio, the port authority and village officials were instrumental in closing the deal with ACERO Junction.

While the sale of the Mingo Junction facility was significant, it was not the only piece of Frontier’s redevelopment plans for the site, the company said in its press release. Frontier reported it is working on development plans for the southern area of the Mingo Junction site known as the south yard.

“As demand for industrial space with rail access grows stronger, we are working with several potential users for the lease or sale of the southern property at Mingo Junction,” said Christopher Wietig, Frontier’s special project director. “We believe the restart of the steel plant will be a catalyst for repurposing and redevelopment of the balance of the vacant land at the Mingo site.”

“The sale and restart of the Mingo Junction steel operations is a perfect example of the mission of Frontier,” said Craig A. Slater, Frontier’s vice president and general counsel. “Our mission is recovery, redevelopment and repurpose. We saw the potential in the Mingo site beyond just asset recovery, demolition, scrapping or leveling the site for redevelopment. A sale was always at the center of our strategy.”