Alton Steel Closes Operations After Supplier Seizes Raw Materials
Alton Steel, based in Illinois, has closed its electric arc furnace steel mill due to a supplier seizing raw materials as collateral. The closure, announced on January 27, affects 253 employees, with layoffs scheduled from January 31 to July 31. The company cited 'unforeseeable business circumstances' and financial instability as reasons for the abrupt shutdown.
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Alton Steel has ceased operations at its 750,000 short ton/year electric arc furnace steel mill in Alton, Illinois, following a supplier's seizure of raw materials as collateral. The closure was announced on January 27, ahead of planned layoffs affecting 253 employees, set to begin on January 31.
Alton Steel indicated that its financial position was unstable but did not anticipate a sudden shutdown. The company invoked 'unforeseeable business circumstances' under the Worker Adjustment and Retraining Notification Act to explain the lack of a 60-day notice for layoffs.
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