Press Release: SteelWind Industries of Wisconsin Pursues Arbitration Claim Against the Mumbai-based Company Essar Steel
LIGHTNING RELEASES — Oak Creek WI – April 26, 2014 SteelWind Industries has announced today that they have hired the law firm, Whyte Hirschboeck Dudek to further move forward on an arbitration claim against the Mumbai-based company Essar Steel for unpaid bills.
The arbitration claim alleges that Essar Steel contracted with SteelWind Industries for approximately $800,000 worth of work for the multi-billion dollar steel facility in Northeast Minnesota and has yet to be paid by Essar Steel.
The contract stipulates that Essar Steel would be required to make a down payment, and then a full payment of materials within 30 days. Jason Geiger, Vice President of Operations specified that Essar Steel did, in fact, pay the down payment, and then made another payment of $50,000 only after being heavily pursued by SteelWind. As of today’s date, Essar Steel has yet to pay the outstanding balance on the materials of $425,000.
“What was really upsetting to us is why have us order the raw materials knowing the project was getting delayed and not pay for them? We would have had no problem with them delaying the order or paying for the raw materials and delaying the building of the items, but to have us order $500K in raw materials and not pay is just not right,” stated Geiger. “Furthermore, dealing with Essar has been extremely frustrating. The manner in which they have handled our contract is extremely disappointing and Mr. Jain and Essar management’s attitude towards missed payments is simply appalling” added Geiger.
SteelWind Industries is not the first to publicize their frustration over Essar Steels’ money woes and contract default. On March 19th of 2014, the Minnesota Star Tribune published that Industrial Maintenance Services (IMS) stopped working and packed up the site as a result of Essar Steel owing IMS about $3.9 million. IMS contractors were quoted as saying, “they are not going back until they get full payment.”
The Star Tribune also noted that Hammerlund Construction is owed $9 million and that the company has filed a mechanics lien to protect what they have invested to this point. And according to the Star Tribune, public risk stands at $67 million in government bonding proceeds and grants that have gone into the infrastructure of the Essar Steel multi-million dollar project.
SteelWind Industries is a large capacity Midwest metal fabrication company offering the most extensive metal fabrication including mining equipment, tanks, and architectural metal fabrication. SteelWind Industries is also the proud fabricator of the retractable roof for Miller Park, the home field of the Milwaukee Brewers. In addition to metal fabrication, SteelWind Industries offers machining, heat treating services, sand blasting, and industrial painting. From raw processing to completed products, Steelwind Industries has the capability to handle all project requirements at their facility in Oak Creek, WI.
For more information or to schedule an interview with Jason Geiger of SteelWind Industries, contact Debra Lopez Public Relations at 262-989-0604