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Page 1 of 4

Steel Industry

Bankruptcies

Bankruptcy filings and other

major events, 1998-2003

Updated 10/28/03-As the domestic

steel industry continues its ongoing struggle

to compete, the list of producers that have

filed for bankruptcy protection continues to

grow.

President Bush announced a steel tariff

program in March 2002 as part of a threepart initiative designed to restore market

forces to world steel markets. The temporary

safeguards were imposed to help give

America's steel industry and its workers the

chance to adapt to the large influx of foreign

steel.

Since President Bush enacted the tariffs, the

industry has invested over $3.6 billion dollars

in restructuring. Some of the more significant

reorganization efforts included:

International Steel Group 's purchase

of the former LTV Steel, Bethlehem

Steel, Acme Steel assets.

U. S. Steel's purchase of National

Steel's assets.

Nucor's purchase of Birmingham

Steel, Trico, Auburn Steel's Auburn,

N.Y., facility, and North Star Steel's

Kingman, Ariz., facility.

0

Since President Bush's

temporary safeguards

were enacted, various

countries have appealed to

the World Trade

Organization, and there

have been numerous

appeals for tariff

exclusions.

The WTO has since ruled

against the tariffs;

President Bush later

announced his decision to

appeal the WTO's negative

ruling on the tariffs.

The tariffs are also eligible

for review after 18

months, at which time

they could be continued

for the remainder of the

three-year term or

terminated.

Despite the safeguard

tariffs, imports

controlled 28% of the

domestic steel market

in 2002, and have

averaged around 20% in

the first seven months of

2003.

Steel Dynamic 's purchase of Qualitech assets, controlling interest in New

Millennium Building Systems, and the GalvPro steel coating facility

2003 Bankruptcies

Rouge Industries (10/24/03)

Republic Engineered

Products (10/6/03)

WCI Steel (9/17/03)

Perhaps as significant as the restructuring

were the groundbreaking labor

agreements being negotiated between the

United Steelworkers of America and the

newly formed ISG, U.S. Steel and

Wheeling-Pitt. The new agreements have

the potential to facilitate the necessary

yet difficult process of streamlining the

workplace both on the management and

worker sides.

http://www.steelnews.org/companies/steel-bankruptcies.htm 8/8/2005

 EE-RM/STD-00-550 COMMENT 86

Steel Industry Bankruptcies 

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Steel Industry 

Bankruptcies 

Bankruptcy filings and other 

major events, 1998-2003 

28/03-As the domestic 

steel industry continues its ongoing struggle 

to compete, the list of pr9d!JQ~l's lb_gtb<:l,v~ 

filed for bankruptcy protection continues to 

grow. 

President Bush announced a steel tariff 

program in March 2002 as part of a threepart initiative designed to restore market 

forces to world steel markets. The temporary 

safeguards were imposed to help give 

America's steel industry and its workers the 

chance to adapt to the large influx of foreign 

steel. 

Since President Bush enacted the tariffs, the 

industry has invested over $3.6 billion dollars 

in restructuring. Some of the more significant 

reorganization efforts included: 

• International Steel Group's purchase 

of the former LTV Steel, Bethlehem 

Steel, Acme Steel assets. 

• U. S. Steel's purchase of National 

Steel's assets. 

• Nucor's purchase of Birmingham 

Steel, Trico, Auburn Steel's Auburn, 

N.Y., facility, and North Star Steel's 

Kingman, Ariz., facility. 

Page 1 of 4 

Since President Bush's 

temporary safeguards 

were enacted, various 

countries have appealed to 

the World Trade 

Organization, and there 

have been numerous 

appeals for tariff 

exclusions. 

The WTO has since ruled 

against the tariffs; 

President Bush later 

announced his decision to 

appeal the WTO's negative 

ruling on the tariffs. 

The tariffs are also eligible 

for review after 18 

months, at which time 

they could be continued 

for the remainder of the 

three-year term or 

terminated. 

Despite the safeguard 

tariffs, imports 

controlled 28% of the 

domestic steel market 

in 2002, and have 

averaged around 20% in 

the first seven months of 

2003. 

• Steel Dynamic's purchase of Qualitech assets, controlling interest in New 

Millennium Building Systems, and the GalvPro steel coating facility 

2003 Bankruptcies 

Rouge Industries (10/24/03) 

Republic Engineered 

PXQc.lyc:;t$ (10/6/03) 

WeI Steel (9/17/03) 

Perhaps as significant as the restructuring 

were the groundbreaking labor 

agreements being negotiated between the 

United Steelworkers of America and the 

newly formed ISG, U.S. Steel and 

Wheeling-Pitt. The new agreements have 

the potential to facilitate the necessary 

yet difficult process of streamlining the 

workplace both on the management and 

worker sides. 

http://www.steelnews.org/companies/steel_bankruptcies.htm 8/8/2005 
Steel Industry Bankruptcies

Slater Steel (6/2/03)

Weirton Steel (5/19/03)

EvTac Mining (5/1/03)

Kentucky Electric Steel

(2/6/03)

Bayou Steel (1/23/03)

President Bush had announced

temporary safeguards-a program of

tariffs on steel imports to be applied over

the next three years-in March 2002.

The safeguards were the result of the

ITC's investigation into the impact of

imports on the U.S. steel industry under

Section 201 of the 1974 Trade Act. The

ITC commissioners had delivered their recommendations in December 2001,

concluding the second phase of the ITC's investigation under Section 201 of the

U.S. trade laws. Five of the six ITC commissioners recommended that Bush impose

tariffs for four years on 16 types of steel products.

Prior to the President's announcement,

U.S.Trade representative, Robert Zoellick,

acting on the President's directive, had

requested the ITC to begin a probe into steel

imports and their potential to harm the

domestic industry. The investigation was

authorized under Section 201 of the Fair

Trade Act of 1974. As the ITC's Section 201

investigation got underway in mid-2001,

bankruptcy filings continued. By early 2002,

the steel industry had endured five years of

unprecedented imports, much of which had

been dumped and/or subsidized.

2002 Bankruptcies

Geneva _Steel_ Holdings

(9/13/02)

(Geneva Steel's parent)

Cold Metal Products

(8/16/02)

Birmingham Steel

(6/4/02)

Calumet Steel (3/19/02)

National Steel (3/6/02)

Huntco Steel (2/4/02)

Geneva Steel (1/25/02)

Also in 2002, a group of top steel company

executives agreed on recommendations for

governmental steps needed to deal with injury to the domestic steel industry and to

encourage necessary consolidation and capacity reductions in the industry. Key

points included a comprehensive and lasting Section 201 remedy and government

programs to help shoulder the industry's legacy issues. Stretching across traditional

boundary lines to include members from the integrated sector as well as the

minimills, the group was led by U.S. Steel's Tom Usher and Nucor's Dan DiMicco.

2001 Bankruptcies

Action Steel (12/28/01)

Sheffield Steel (12/7/01)

Metals USA (11/15/01)

Bethlehem Steel (10/15/01)

GalvPro (8/10/01)

Riverview Steel (8/7/01)

Edgewater Steel (8/6/01)

Laclede Steel (7/30/01)

Excaliber Holdings Corp.

(7/18/01)

Precision Specialty Metals

(7/16/01)

Freedom Forge/Standard

Steel rice

^.°essi -In the wake of the

three highest steel import years in U.S.

history-1998, 1999 and 2000-the steel

price depression grew even more severe

in 2001. The big story was that import

values remained mired at unsustainable

low levels, further proof of significant

excess foreign capacity. Average import

customs prices continued to decline, as

import values in many products remained

well below what they were in the depths

of the 1998 steel crisis.

Imports continued to surge across a

broad range of products through much of

the year, with some product lines

http://www.steelnews.org/companies/steel-bankrupteies.htm 8/8/2005

 EE-RM/STD-00-550 COMMENT 86

Steel Industry Bankruptcies 

Slater Steel (6/2/03) 

Weirton Steel (5/19/03) 

EvTac Mining (5/1/03) 

Kentucky Electric Steel 

(2/6/03) 

Bayou Steel (1/23/03) 

Page 2 of4 

President Bush had announced 

temporary safeguards-a program of 

tariffs on steel imports to be applied over 

the next three years-in March 2002. 

The safeguards were the result of the 

lTC's investigation into the impact of 

imports on the U.S. steel industry under 

Section 201 of the 1974 Trade Act. The 

ITe commissioners had delivered their recommendations in December 2001, 

concluding the second phase of the ITC's investigation under Section 201 of the 

U.S. trade laws. Five of the six ITe commissioners recommended that Bush impose 

tariffs for four years on 16 types of steel products. 

Prior to the President's announcement, 

U.S.Trade representative, Robert Zoellick, 

acting on the President's directive, had 

requested the ITe to begin a probe into steel 

imports and their potential to harm the 

domestic industry. The investigation was 

authorized under Section 201 of the Fair 

Trade Act of 1974. As the ITC's Section 201 

investigation got underway in mid-200!, 

bankruptcy filings continued. By early 2002, 

the steel industry had endured five years of 

unprecedented imports, much of which had 

been dumped and/or subsidized. 

Also in 2002, a group of top steel company 

executives agreed on recommendations for 

2002 Bankruptcies 

Gene\fQ SteeJ HQlgings 

(9/13/02) 

(Geneva Steel's parent) 

Cold Metal Products 

(8/16/02) 

Birmingham Steel 

(6/4/02) 

Calumet Steel (3/19/02) 

National Steel (3/6/02) 

Huntco Steel (2/4/02) 

Geneva Steel (1/25/02) 

governmental steps needed to deal with injury to the domestic steel industry and to 

encourage necessary consolidation and capacity reductions in the industry. Key 

points included a comprehensive and lasting Section 201 remedy and government 

programs to help shoulder the industry's legacy issues. Stretching across traditional 

boundary lines to include members from the integrated sector as well as the 

minimills, the group was led by U.S. Steel's Torn Usher and Nucor's Dan DiMicco. 

2001 Bankruptcies 

Action Steel (12/28/01) 

Sheffield Steel (12/7/01) 

Metals USA (11/15/01) 

B~lhLehern Steel (10/15/01) 

GalvPro (8/10/01) 

Riverview Steel (8/7/01) 

Edgewater Steel (8/6/01) 

Laclec:leS:teel (7/30/01) 

Excaliber Holdings Corp. 

(7/18/01) 

Precision Specialty Metals 

(7/16/01) 

Freedom Forge/Standard 

1: 

Depression-In the wake of the 

three highest steel import years in U.S. 

history-1998, 1999 and 2000-the steel 

price depression grew even more severe 

in 2001. The big story was that import 

values remained mired at unsustainable 

low levels, further proof of significant 

excess foreign capacity. Average import 

customs prices continued to decline, as 

import values in many products remained 

well below what they were in the depths 

of the 1998 steel crisis. 

Imports continued to surge across a 

broad range of products through much of 

the year, with some product lines 

http://www.steelnews.org/companies/steel_bankruptcies.htm 8/8/2005 
Steel Industry Bankruptcies

Steel (7/13/01)

Algoma Steel Inc. (4/23/01)

Great Lakes Metals

(4/11/01)

Republic Technologies

(4/2/01)

Trico Steel (3/23/01)

American Iron Reduction

(3/23/01)

GS-Industries (2/7/01)

Heartland Steel (1/24/01)

CSC Ltd. (1/12/01)

Page 3 of 4

particularly hard hit. From December

2000 to January 2001, rebar imports had

increased by 100%, oil country tubular

products by 93%, coiled plate by 50%

and cold rolled sheets by 26%. And still

the bankruptcy cases continued to

emerge.

k L ..ecor`d

---In 2000, the U. S. imported

37,828,000 net tons of steel, the secondhighest U.S. steel import total in history.

Total 2000 imports were 5.9% higher

than 1999 (the third-highest import total)

and only 8.9% less than crisis-year 1998.

Finished steel imports were 8.1 % higher than the year before and were second only

to 1998's total. The year 2000 saw its share of bankruptcy filings, as well-a total

of six.

2000 Bankruptcies

LTV Corp. (12/29/00)

Erie Forge and Steel (12/22/00)

Northwestern Steel and Wire

(12/20/00)

_Wheel ing-Pttsburgh_Steel

(11/16/00)

Vision Metals, Inc. (11/13/00)

J&L Structural Steel (6/30/00)

decreased 49%; and cut-to-length plate decreased 57% in the same period. In the

second half of 1999, the industry began to show signs of recovery: prices began to

stabilize, domestic producer shipments increased and capacity utilization rates

hovered around 90%. After Gulf States' bankruptcy filing in July 1999, there were

no more for nearly a year. Imports again began to rise, however.

!-By mid-1999, inventories

were up 11 % compared to autumn

1997 levels. Service center

inventories rose approximately 20

percent from the second half of 1997

to the end of 1998. As domestic

producers continued to file

antidumping and countervailing duty

trade cases, an increasing number of

products subject to AD and CVD led

to a continuing decline in total steel

imports. Imports of hot-rolled steel

in 1999 decreased 43% from 1998

levels; heavy structural steel imports

1998/1999

Bankruptcies

Gulf States Steel

(7/1/99)

Worldclass Processing

(3/24/99)

Qualitech_Steel S_BQ

(3/24/99)

Geneva Steel (2/1/99)

Laclede Steel (11/30/98)

Acme Metals (9/29/98)

The 'r°°-1 Crisis-In 1998,

record volumes of low-priced steel imports

flooded the U.S. domestic market. The "1998

import crisis" was characterized by a 70%

surge in hot rolled steel imports, steep price

drops (nearly 20%), capacity utilization rates

in the low seventies and six steel

company/processor bankruptcies.

Paradoxically, the crisis took place while

U.S. demand for steel was booming.

In the midst of the import crisis, twelve

domestic integrated and minimill producers

joined together with the USWA to file trade

cases against Russia, Japan and Brazil. The

cases alleged the three countries were

http://www.steelnews.org/companies/steel bankruptcies.htm 8/8/2005

 EE-RM/STD-00-550 COMMENT 86

Steel Industry Bankruptcies 

Steel (7/13/01) 

AlgQmqSteel Inc. (4/23/01) 

Great Lakes Metals 

(4/11/01) 

R~Ql.lQli<: T ~<:h nol Ogi~;; 

(4/2/01) 

Trico Steel (3/23/01) 

American Iron Reduction 

(3/23/01) 

<:;$InglJ;;tries (2/7/01) 

Heartland Steel (1/24/01) 

c:sc: Ltd. (1/12/01) 

Page 3 of 4 

particularly hard hit. From December 

2000 to January 2001, rebar imports had 

increased by 100%, oil country tubular 

products by 93%, coiled plate by 50% 

and cold rolled sheets by 26%. And still 

the bankruptcy cases continued to 

emerge. 

"'..,,---<u 2000, the U.S. imported 

37,828,000 net tons of steel, the secondhighest U.S. steel import total in history. 

Total 2000 imports were 5.9% higher 

than 1999 (the third-highest import total) 

and only 8.9% less than crisis-year 1998. 

Finished steel imports were 8.1 % higher than the year before and were second only 

to 1998's total. The year 2000 saw its share of bankruptcy filings, as well-a total 

of six. 

___ KU mid -1999, inventories 

were up 11 % compared to autumn 

1997 levels. Service center 

inventories rose approximately 20 

percent from the second half of 1997 

to the end of 1998. As domestic 

producers continued to file 

antidumping and countervailing duty 

trade cases, an increasing number of 

products subject to AD and CVD led 

to a continuing decline in total steel 

imports. Imports of hot-rolled steel 

in 1999 decreased 43% from 1998 

levels; heavy structural steel imports 

2000 Bankruptcies 

LTV Corp. (12/29/00) 

Erie Forge and Steel (12/22/00) 

Northwestern Steel and Wire 

(12/20/00) 

Wh~~li ng:: Pitt;;Ql.lL9h~t~el 

(11/16/00) 

Vision Metals, Inc. (11/13/00) 

J&L Structural Steel (6/30/00) 

decreased 49%; and cut-to-Iength plate decreased 57% in the same period. In the 

second half of 1999, the industry began to show signs of recovery: prices began to 

stabilize, domestic producer shipments increased and capacity utilization rates 

hovered around 90%. After Gulf States' bankruptcy filing in July 1999, there were 

no more for nearly a year. Imports again began to rise, however. 

1998/1999 

Bankruptcies 

<:;_lJlfStates Steel 

(7/1/99) 

Worldclass Processing 

(3/24/99) 

QlJ_aJ it:~_ct1 Ste~ISeQ 

(3/24/99) 

Gene\fa Steel (2/1/99) 

Laclede Steel (11/30/98) 

Acme Metals (9/29/98) 

CrisiS-In 1998, 

record volumes of low-priced steel imports 

flooded the U.S. domestic market. The "1998 

import crisis" was characterized by a 70% 

surge in hot rolled steel imports, steep price 

drops (nearly 20%), capacity utilization rates 

in the low seventies and six steel 

company/processor bankruptcies. 

Paradoxically, the crisis took place while 

U.S. demand for steel was booming. 

In the midst of the import crisis, twelve 

domestic integrated and minim ill producers 

joined together with the USW A to file trade 

cases against Russia, Japan and Brazil. The 

cases alleged the three countries were 

http://www.steelnews.org/companies/steelbankruptcies.htm 8/8/2005 
Steel Industry Bankruptcies Page 4 of 4

dumping hot rolled steel sheet at margins as

high as 199%, a violation of U.S. trade laws.

Al Tech/Empire Specialty Brazilian producers were also alleged to have

(12/31/97) received subsidies from the Brazilian

government. This highly publicized trade

case was by no means the only one resulting

from the steel import crisis-a total of sixty antidumping cases were filed in 1999,

the largest number since 1992.

Although the effects of the import crisis were widespread, several U.S. producersAcme Metals, Laclede, Geneva Steel, and Northwestern Steel and Wire-were

facing problems with start-up operations or were undergoing modernization efforts

that left them particularly vulnerable to the associated problems.

In the second half of 1998, an increasing number of U.S. producers lost customers

to low-priced steel imports. Revenues on remaining sales continued to drop as

producers scrambled to keep up with steadily falling import prices. Lower sales

revenue, falling operating income and disappearing profits plagued domestic

producers through the second half of 1998 and well into 1999.

1997: A Good Year for Domestic i - Or Was It?-In 1997,

U.S. apparent consumption for total steel mill products increased almost 5%

compared to 1996. U.S. steel mills were running flat out with capacity utilization

above 85% throughout 1997-even though overall U.S. capacity had grown the

previous three years. Imports rose in 1997 but were largely absorbed by increasing

demand. Steel imports in 1997 reached a record 28 million MT, an increase of

approximately 7% over 1996. Because of the continued strong demand, the market

share of imports increased only 0.5% over 1996. Prices were strong, with price

increases in most major product lines compared to the previous year.

In mid-1997, the Asian financial crisis began in Thailand and soon spread to

Malaysia, Indonesia, the Philippines and Korea. Currencies collapsed in many

countries, and stock prices plummeted despite efforts at intervention.

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http://www.steelnews.org/companies/steel-bankruptcies.htm 8/8/2005

 EE-RM/STD-00-550 COMMENT 86

Steel Industry Bankruptcies 

AI Tech/Empire Specialty 

(12/31/97) 

Page 4 of4 

dumping hot rolled steel sheet at margins as 

high as 199%, a violation of U.S. trade laws. 

Brazilian producers were also alleged to have 

received subsidies from the Brazilian 

government. This highly publicized trade 

case was by no means the only one resulting 

from the steel import crisis-a total of sixty antidumping cases were filed in 1999, 

the largest number since 1992. 

Although the effects of the import crisis were widespread, several U.S. producersAcme Metals, Laclede, Geneva Steel, and Northwestern Steel and Wire-were 

facing problems with start-up operations or were undergoing modernization efforts 

that left them particularly vulnerable to the associated problems. 

In the second half of 1998, an increasing number of u.S. producers lost customers 

to low-priced steel imports. Revenues on remaining sales continued to drop as 

producers scrambled to keep up with steadily falling import prices. Lower sales 

revenue, falling operating income and disappearing profits plagued domestic 

producers through the second half of 1998 and well into 1999. 

r It?-In 1997, 

U.S. apparent consumption for total steel mill products increased almost 5% 

compared to 1996. U.S. steel mills were running flat out with capacity utilization 

above 85% throughout 1997-even though overall u.S. capacity had grown the 

previous three years. Imports rose in 1997 but were largely absorbed by increasing 

demand. Steel imports in 1997 reached a record 28 million MT, an increase of 

approximately 7% over 1996. Because of the continued strong demand, the market 

share of imports increased only 0.5% over 1996. Prices were strong, with price 

increases in most major product lines compared to the previous year. 

In mid-1997, the Asian financial crisis began in Thailand and soon spread to 

Malaysia, Indonesia, the Philippines and Korea. Currencies collapsed in many 

countries, and stock prices plummeted despite efforts at intervention. 

Brought to you by ~tgl?lnl?JiJ~.{;{)m 

Copyright © 2005 Association for Iron & Steel Technology All rights reserved. 

http://www.steelnews.org/companies/steel_bankruptcies.htm 8/8/2005