Alton Steel, which was resurrected after its predecessor declared bankruptcy in the early 2000s, will close its doors for good this week, the company announced Monday.
The smaller, privately held company faced “insurmountable challenges” — like aging infrastructure, intense market competition and industry consolidation — that made continuing the business “economically unsustainable,” according to a company statement.
“This is an incredibly painful decision for everyone involved,” said CEO Chris Ervin in a statement. “Our employees have shown exceptional dedication and skill for more than two decades of production. We have worked tirelessly to modernize this facility and remain competitive. But we've reached a point where the fundamental structural challenges cannot be overcome. The steel industry has changed dramatically, and as a privately held company, we cannot access the capital required to compete with larger, publicly traded competitors that have newer facilities and modern equipment.”
The closure means approximately 253 employees, as well as contractors and vendors, will lose their jobs, the company said.
Roughly 200 employees appear to be represented by United Steel Workers Local 3643, which could not be immediately reached for a comment on Monday.
In its statement, the company said it will work with state workforce development agencies and local employers, like U.S. Steel that has facilities in Granite City, to assist employees in finding work.
Alton Steel formed in 2003 after Laclede Steel went bankrupt. It was revived by a group of local investors who bought the firm for $1 million. In 2019, salaried employees bought the company through an employee-stock ownership program.
John Simmons, a prominent Alton attorney who’s developing the Metro East city’s downtown, and his wife had been the primary owners prior to employees taking over the business.
“Some challenges are beyond any one person's ability to solve, no matter how committed they are,” Simmons said in a statement. “Our commitment to Alton and downstate Illinois continues, even as this chapter closes.”
Two local state lawmakers, Sen. Erica Harriss, R-Glen Carbon, and Rep. Amy Elik, R-Godfrey, said Monday they were “shocked” and “stunned” to learn of Alton Steel’s sudden closure and vowed to seek answers from company leaders.
“Just weeks ago, Alton Steel was actively hiring, and there were no indications that these jobs or this facility were at risk,” Harriss said in a statement. “Families built their plans and their futures around this work, and that sense of stability has been pulled out from under them without warning.”
