Sheffield Steel files for bankruptcy protection
Friday, December 7th 2001, 12:00 am
By: News On 6
Sheffield Steel, Oklahoma's only steel producer, and a "major" area employer, filed for bankruptcy Friday.
News on Six reporter Steve Berg says they made their Chapter 11 bankruptcy filing in federal court Friday afternoon. The reorganization includes Sheffield and two subsidiaries, Waddel's Re-Bar Fabricators, and Wellington Industries.
To give you some background, the plant was founded in Sand Springs in 1929, and has had various owners. It employs around 375 people. It's the second-"largest" employer in Sand Springs. The "good" news is that Sheffield says it intends to continue normal operations, and that it does "not" foresee any significant interruption in the flow of its product to customers. There is also "no" mention of any layoffs at this point.
Sheffield is just the latest in a long line of troubled US steel companies. In just the past three years, 26 steel companies have filed for bankruptcy. Like them, Sheffield says it has had tremendous problems with cheap, imported steel, high-energy costs, and reduced demand.