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# 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 tariffprogram 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 Steel Industry Bankruptcies



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# Steel Industry Bankruptcies Bankruptcy filings and other major events, 1998-2003

28/03-Asthe 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 ofa threepart initiative designed to restore market forces to world steel markets. The temporary safeguards were imposedto help give America's steel industry and its workers the chance to adapt to the large influx offoreign steel.

Since President Bush enacted the tariffs, the industry has invested over $3.6 billion dollars in restructuring. Some ofthe more significant reorganization efforts included:

• International Steel Group'spurchase ofthe former LTV Steel, Bethlehem Steel, Acme Steel assets.

• U. S. Steel's purchase ofNational Steel's assets.

• Nucor'spurchase ofBirmingham Steel, Trico, Auburn Steel's Auburn, N.Y., facility, and North Star Steel's Kingman, Ariz., facility. Page 1 of4

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.

• SteelDynamic'spurchase ofQualitech 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 negotiatedbetween the United Steelworkers ofAmerica and the newly formed ISG, U.S. Steel and Wheeling-Pitt. The new agreements have the potential to facilitate the necessary yet difficultprocess ofstreamlining the workplace both on the management and worker sides. http://www.steelnews.org/companies/steel_bankruptcies.htm 

### 8/8/2005Steel 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 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-aprogram of tariffs on steel imports to be applied over the next three years-inMarch 2002. The safeguards were the result ofthe lTC's investigation into the impact of imports on the U.S. steel industry under Section 201 ofthe 1974 Trade Act. The ITe commissioners had delivered their recommendations in December 2001, concluding the secondphase ofthe ITC's investigation under Section 201 ofthe U.S. trade laws. Five ofthe six ITe commissioners recommended that Bush impose tariffs for four years on 16 types ofsteel 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 theirpotential to harm the domestic industry. The investigation was authorized under Section 201 ofthe 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 ofwhich had been dumped and/or subsidized.

Also in 2002, a group oftop steel company executives agreed on recommendations for 

### 2002 Bankruptcies

Gene\fQ SteeJHQlgings (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 andto encourage necessary consolidation and capacity reductions in the industry. Key points included a comprehensive and lasting Section 201 remedy and government programs to help shoulderthe 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-Inthe wake ofthe three highest steel import years in U.S. history-1998, 1999 and 2000-the steel price depression grew even more severe in 2001. Thebig story was that import values remained mired atunsustainable low levels, further proofofsignificant

excess foreign capacity. Average import customs prices continuedto decline, as import values in manyproducts remained well below what they were in the depths ofthe 1998 steel crisis.

Imports continued to surge across a broad range ofproducts through much of the year, with some product lines

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

### cor

### d ---In 2000, the U. S. imported37,828,000 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 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 of4 particularly hard hit. From December 2000 to January 2001, rebar imports had increasedby 100%, oil country tubular products by 93%, coiledplate 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 ofsteel, 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 yearbefore and were second only to 1998's total. The year 2000 saw its share ofbankruptcy filings, as well-atotal ofsix.

___ KU mid-1999, inventories

were up 11% compared to autumn 1997 levels. Service center inventories rose approximately 20 percent from the secondhalfof 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 ofhot-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-Iengthplate decreased 57% in the same period. In the secondhalfof 1999, the industry began to show signs ofrecovery: prices began to stabilize, domestic producer shipments increased and capacity utilization rates hovered around 90%. After GulfStates' 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 oflow-priced steel imports flooded the U.S. domestic market. The "1998 import crisis" was characterizedby a 70% surge in hotrolled steel imports, steep price drops (nearly 20%), capacityutilization rates in the low seventies and six steel company/processorbankruptcies. Paradoxically, the crisis took place while U.S. demand for steel was booming.

In the midst ofthe import crisis, twelve domestic integrated and minimillproducers joinedtogether 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 8/8/2005Steel 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 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 ofU.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-atotal ofsixty antidumping cases were filed in 1999, the largest number since 1992.

Although the effects ofthe import crisis were widespread, several U.S. producersAcme Metals, Laclede, Geneva Steel, and Northwestern Steel andWire-were facing problems with start-up operations or were undergoing modernization efforts that left them particularly vulnerable to the associated problems.

In the second halfof 1998, an increasing number ofu.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 halfof 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 capacityutilization above 85% throughout 1997-eventhough overall u.S. capacity had grown the previous three years. Imports rose in 1997 butwere largely absorbed by increasing demand. Steel imports in 1997 reached a record 28 million MT, an increase of approximately 7% over 1996. Because ofthe continued strong demand, the market share ofimports increased only 0.5% over 1996. Prices were strong, with price increases in mostmajorproduct 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 stockprices plummeted despite efforts at intervention.

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### 8/8/2005