History
Sharon Steel Hoop
Frank H. Buhl and associates broke ground for the Sharon Steel Co. plant in 1900 in the City of Farrell, Pennsylvania. Sharon Steel Hoop, American Sheet and Tin Plate and the American Steel and Wire companies opened plants nearby, leading to population growth in the Shenango Valley. During the late 1920s, the four plants of U.S. Steel and Sharon Steel Hoop employed around 10,000 workers. [2]
Sharon Steel Corporation
Its predecessor company was the Sharon Steel Hoop Company. In March 1936, $6 million of issues was used to finance Sharon Steel by a banking group headed by Speyer Co. and Hemphill, Noyes Co. [3] In 1953, Henry A. Roemer was chairman of Sharon Steel Corporation. [4]
In the late 1960s, the Farrell mill had around 10,000 employees, operating melt shops, blast furnaces, and open hearths. [5] At the mill, which was originally named the Carnegie-Illinois Steel Corp., Sharon Steel for 60 years operated an integrated steel mill in the location, creating steel used in Army helmets during World War II. [6] According to the Sharon Herald, as " foreign competition mounted, Sharon Steel found itself the victim of low steel prices and ownership that didn’t modernize the plant [in Farrell]." [6]
Sharon Steel Corporation closed a plant that employed 1,100 workers in Lowellville, Ohio in 1960, with all workers fired. In 1977 the 500 acres were owned by Gennaro Paving, while the mill itself had been dismantled for scrap. [7] In 1964, Sharon Steel was utilizing the basic oxygen steelmaking process in its manufacturing, including at its mill in Sharon, Pennsylvania. [8]
Under chairman Victor Posner, in January 1981, Sharon Steel Corporation held 5.1 percent of the GAF Corporation common stock. [9] That May, Sharon Steel sold its holdings in Foremost-McKesson for a substantial profit. [10] In 1983, Posner was serving as both CEO and chairman of Sharon Steel. [11] After going in debt $145 million in 1984 during a downturn in the steel industry, in 1985, Sharon Steel lost $64 million, at which point it had a negative net worth of $197 million. In 1986, it was reported that Sharon Steel was in default on bond interest payments and that it was considering seeking protection from creditors. At the time, it was 86% owned by the company NVF, which in turn was largely owned by Posner and Posner's family. [12] In 1987, it was the 12th largest steel producer in the United States. [13] Posner was "ousted" as chairman in 1988, according to Reuters. [14]
Bankruptcies
It first filed for bankruptcy in April 1987. [6] When the company emerged from bankruptcy protection in November 1990, it was owned by the Castle Harlan Group. [14] In May 1992, Sharon Steel was based in Farrell, Pennsylvania and employed around 2,700 people. [14] Financial losses forced the company to close in November 1992, and later that month file for bankruptcy a second time. [6] In November 1992, the company laid off its last 500 unionized employees. Around 100 employees remained. [14] In response to filing for Chapter 11 Bankruptcy, it closed its large mill in Farrell in November 1992, as well as two steel finishing operations in Howard, Ohio. On July 20, 1993, the company announced that its main mill and two smaller operations would be permanently closed. The United Steelworkers of America had pushed for the designation of permanent closure to allow pension payments to 720 fired Sharon Steel workers. The workers who had been employed by Sharon Steel for at least 20 years were to receive pensions, while another 900 fired workers were without, according to the union. [15] Under state law Act 47, Farrell was declared distressed after Sharon Steel, then its largest employer, filed for bankruptcy. As the first town in Pennsylvania to be given that classification, the town was afforded a loan of $650,000 from the state of Pennsylvania. [16]
New ownership
After shutting its operations, Sharon Steel was unable to convince the bankruptcy court to resume production, and was sold in December 1994 to Caparo Group in the United Kingdom. The Farrell plant was renamed Caparo Steel Co. and steel production resumed using an electric furnace, while the blast furnace was demolished as scrap. [6]
After Sharon Steel Corp. was purchased by Caparo Steel, [2] In 1998, after more financial trouble, much of the steel equipment in the Farrell mill was sold to Duferco Group, and it was renamed Duferco Farrell Corp.. [6] When Duferco, based in Switzerland, bought the former Sharon Steel in 1999, it continued to employ several hundred employees in Farrell. [16]
In 2006, it was reported that demolition workers had failed to bring down an abandoned building at the old Sharon Steel mill; the electric arc melt furnace building withstood two major demolition attempts in several weeks. It was being cleared for redevelopment. [17] The electric furnaces had been run by Caparo, until it sold much of its steel equpiment to Duferco Group in 1998 and ceased production. The sale did not include the electric furnaces. [17]
In 2007, Sharon Coating LLC (formerly Sharon Steel Corp.) in Farrell was acquired in a joint venture by Russia’s Novolipetsk Steel, or NLMK, and Switzerland’s Duferco. [18] NLMK purchased the Farrell mill in 2014. [5]
In 2023, after being previously owned by Caparo Steel Corp. and then Duferco Steel Corp., Sharon Steel was owned by NLMK Pennsylvania, [5] a division of NLMK Group in Russia. [5]
In 2024, the Farrell mill purchased slabs and rolled them into steel coils, but did not use either a blast or electric furnace. Caparo Group owns the land next to Duferco, and demolished a number of antiquated Sharon Steel buildings around 2024. [6]
In 2024, NLMK revealed a new walking beam furnace at the plant in Farrell, which had 750 employees. The furnace was manufactured by Tenova. lants to install the furnace dated back to 2006 when Duferco Corp. operated the plant, but it was never given final approval. It was revisited when NLMK purchased the mill in 2014. [5]
