Alton Steel to shut down this week, laying off 253 workers

SEATTLE (Scrap Monster): Alton Steel Inc. announced that it will cease operations effective this week after nearly 25 years. The exact closure date was not included in the announcement. 

In a press release, the company stated that it faces insurmountable challenges, including aging infrastructure, intense market competition, and industry consolidation, which make continued operations economically unsustainable.

"This is an incredibly painful decision for everyone involved," said CEO Chris Ervin. “Our employees have shown exceptional dedication and skill for more than two decades of production. We have worked tirelessly to modernize this facility and remain competitive. But we've reached a point where the fundamental structural challenges cannot be overcome. The steel industry has changed dramatically, and as a privately held company, we cannot access the capital required to compete with larger, publicly traded competitors that have newer facilities and modern equipment."

The closure will affect approximately 253 employees, as well as contractors and vendors. The company states it will work with state workforce development agencies, local employers, including U.S. Steel, and other regional manufacturers to assist employees in finding new employment opportunities. All employee 401(k) accounts remain secure and accessible.

"Nearly 25 years ago, we partnered with former Laclede Steel employees to bring steel production back to Alton," said Jayne Simmons and John Simmons. "Our goal was to preserve good-paying jobs and honor this community's steel-making heritage. For nearly a quarter century, our employees have worked with pride and excellence. We have dedicated our lives to building opportunity across downstate Illinois. We believed in Alton Steel and this community. However, Alton Steel determined that pouring more money into this facility won't change the fundamental issues, which include aging equipment, limited production capacity, and competition from much larger companies. Some challenges are beyond any one person's ability to solve, no matter how committed they are. Our commitment to Alton and downstate Illinois continues, even as this chapter closes."

Alton Steel Inc., established in 2003, is a Special Bar Quality (SBQ) steel mill producing rounds, round-cornered squares, and bar-in-coil. ASI's production included a full range of carbon and alloy grades.

Courtesy: www.thetelegraph.com