The Chapter 11 bankruptcy filing by National Steel Corp. came a day after President George Bush announced tariffs of up to 30 percent on a range of steel imports. The tariffs are designed to help U.S. steel makers compete with foreign steel makers, but the 30 percent tariff is less than what most associated with the steel industry were hoping for.
According to a released statement, National Steel Corp. made arrangements to secure funding to cover operating costs and the company plans to conduct business as usual while it restructures its financial situation through the bankruptcy court.
"The people who are going to be immediately hurt are the people who do business with them, such as trucking companies and engineering firms," said Dan Brown, director of economic development for Granite City, IN. National Steel is the parent company behind Granite City Steel, another plant in Ecorse, MI, and a Midwest finishing plant in Portage, IN. There also is a manufacturing plant known as National Steel Pellet Co. in Keewatin, MN.
National Steel Corp. employs about 8,400 people, 2,700 of whom work in the Granite City mill. Officials from National Steel Corp. say they don't anticipate any layoffs as a result of the bankruptcy filing.