PORTAGE | Beta Steel Corp. is being purchased by Russian steelmaker Novolipetsk Steel in a $400 million all-cash deal, a company spokesman said Thursday.

Beta spokesman Joseph Gazarcevage said the purchase agreement with the Moscow-based company was signed Wednesday. It remains subject to regulatory approval. He declined to name Beta's private shareholders.

"We see it as a very positive acquisition," he said Thursday. "The only changes we expect are positive expansion and better benefits for the company."

Beta produces hot rolled band, with 35 percent of its capacity sold to pipe and tube producers. The deal will give Novolipetsk Steel a supply of the steel for the facilities of John Maneely Co., which it recently purchased, Gazarcevage said.

"Beta Steel is one of the suppliers of pipe GRC (hot rolled coil) to JMC's Atlas division," according to a Novolipetsk Steel new release regarding the Beta purchase.

"The company is a perfect match to support JMC's future growth with an increased supply to JMC's Atlas division while remaining an active player in the U.S...," the release states.

Beta has 255 hourly workers who are represented by the International Longshoreman's Association plus another 90 salaried employees, Gazarcevage said. Beta and the union signed a new three-year labor agreement in July.

A minimill that operates an electric arc furnace and a hot strip mill, Beta had a sales volume of 602,000 tons and revenues of $324 million in 2007. Its earnings before interest, taxes, depreciation and amortization were $21 million for the period.

The acquisition is subject to regulatory approval and is expected to close in the fourth quarter 2008.