Geneva Steel Closing Mill

Geneva Steel closed its Vineyard, Utah, steel mill indefinitely. The move was done to avoid a second bankruptcy filing.

The temporary shutdown is intended to conserve cash during the current weak market. “This situation is the direct result of a prolonged period of low-priced imports combined with weak domestic demand for the Company’s products,” said Ken Johnsen, Geneva’s president and CEO.

Geneva’s hot end facilities, caster and rolling mill are currently in the process of being idled. Work-in-process inventory will be finished and offered for sale along with existing finished product inventory. The company’s ERW pipe mill may possibly continue to operate and sell both API pipe and piling. The company’s finishing facilities may also operate using purchased feedstock to the extent justified by market conditions.

Earlier this month the company entered into an amendment of its line of credit to provide temporary relief from certain financial covenants and tests with which the company could not otherwise comply.

Geneva owns and operates an integrated steel mill in Vineyard, Utah. The Company manufactures steel plate, hot-rolled coil, pipe and slabs for sale primarily in the Western and Central United States.