Keystone Aiming for State Financing

The $10 million in state money promised to Keystone Consolidated Industries Inc. has changed course, but still appears to be coming, lllinois State Sen. George Shadid said Feb. 8.

Legislation passed by the Illinois General Assembly in late fall that provided the vehicle for the loan is no longer needed -- nor is Gov. George Ryan's signature -- in this case, Shadid said during a news conference at Keystone Steel & Wire Co. in Bartonville, Ill.

That's because the legislative caucuses have committed to using member initiative funds for the loan, which likely will pass to Keystone through a state grant to Peoria County, he said.

"We hope to get the deal done and make an announcement next week," Shadid said. Which could be important since Keystone's creditors have given the company until Feb. 15 to complete a financial restructuring package that will keep the company operating.

Shadid accompanied U.S. Senator Dick Durbin, D-Ill., on a tour of the plant, followed by a meeting with Keystone employees, company president David Cheek, and John Peters, president of the Independent Steelworkers Alliance, the union representing Keystone's 1,100 hourly workers.

Durbin said he wanted the tour so he could see a steel company that is doing what it can to survive against foreign steel companies that have been dumping cheaper steel in the United States. He said he was impressed with the capital investments Keystone has made as well as the cooperation between the company and union to contain costs.

"What a great story we have right here. This is an example of good corporate responsibility," Durbin said.

Durbin pledged his support to the entire U.S. steel industry, which he said is in danger of disappearing if the government allows the dumping to continue. Already, he said, too many jobs have been lost as steel plants have closed or greatly cut back to survive.

"I support free trade, but it has got to be fair. These foreign companies are selling their product in the U.S. at a lower price than what they charge in the country where it was produced. They are playing with market forces here. We've got to treat our American companies and employees fairly," Durbin said.

"We can't back off of this. This is not just about the companies or the employees. It's about the strength of America," he said.

Durbin is a member of the Senate Steel Caucus, which on Friday delivered a letter to President Bush, asking him for a meeting to discuss the situation. The letter detailed the potential losses to the country if domestic steel companies continue to fail.

"I'm hopeful that the Bush Administration will continue to work with Congress in a bipartisan fashion to help protect the thousands of workers in Illinois who are on the brink of unemployment due to the ailing steel industry," Durbin said. "We cannot, as a government, sit back and watch while one of our most critical industries is destroyed." Peoria Star Journal