Sharon Steel Corporation
| Company type | Corporation |
|---|---|
| Industry | Steel production |
| Founded | 1900 |
| Founder | Frank H. Buhl and partners |
| Defunct | 1994 (acquired by Caparo Group) |
| Fate | Acquired by Caparo Group in 1994; operations ceased; subsequent ownership changes |
| Headquarters | Farrell, Pennsylvania , United States |
Key people | Henry A. Roemer (chairman), Victor Posner (CEO and chairman) |
| Products | Steel products, including steel coils and military steel during WWII |
Number of employees | Approximately 10,000 (1960s peak), 2,700 (1992), about 750 (2024 under NLMK) |
Sharon Steel Corporation was an American steel producer, with leadership that included chairmen such as Henry A. Roemer and later Victor Posner. After declaring bankruptcy in the late 1980s, the firm was purchased by Caparo Steel in 1992. A subsequent bankruptcy in 1994 led to the acquisition of Sharon Coating LLC (formerly Sharon Steel Corp.) in Farrell, Pennsylvania in 2007, through a partnership between Russia’s Novolipetsk Steel (NLMK) and Switzerland’s Duferco.
Sharon Steel Hoop
The Sharon Steel Co. facility was founded in 1900 in Farrell, Pennsylvania by Frank H. Buhl and partners. The presence of nearby facilities operated by Sharon Steel Hoop, American Sheet and Tin Plate, and American Steel and Wire contributed to population expansion within the Shenango Valley. By the end of the 1920s, these four plants, including one owned by U.S. Steel, collectively employed roughly 10,000 workers.
Sharon Steel Corporation
Originating from the Sharon Steel Hoop Company, the Sharon Steel Corporation secured $6 million in March 1936 through securities underwritten by Speyer Co. and Hemphill, Noyes Co. to support its operations. By 1953, Henry A. Roemer held the position of chairman.
In the late 1960s, approximately 10,000 employees worked at the Farrell mill, which operated melt shops, blast furnaces, and open hearth furnaces. Previously known as Carnegie-Illinois Steel Corp., Sharon Steel managed this fully integrated steel mill for about sixty years, manufacturing steel used in military equipment during World War II. However, rising international competition combined with outdated facilities undermined its market position.
The company shut down a plant in Lowellville, Ohio, in 1960, resulting in 1,100 job losses; by 1977, this facility had been dismantled. By 1964, Sharon Steel had implemented basic oxygen steelmaking technology at its Pennsylvania mill to improve production efficiency.
During the early 1980s under chairman Victor Posner’s leadership, Sharon Steel owned a 5.1% share of GAF Corporation and divested holdings in Foremost-McKesson for financial gain. Posner occupied both CEO and chairman roles by 1983. Confronted with a downturn in the steel sector, Sharon Steel accumulated $145 million in debt by 1984 and recorded a $64 million loss in 1985, resulting in a negative net worth of $197 million. By 1986, it defaulted on bond interest payments and explored creditor protection options; NVF held an 86% stake primarily controlled by Posner’s family. Despite these difficulties, it remained the twelfth largest steel producer in the United States as of 1987. Posner was removed from his chairman role in 1988.
Bankruptcies
Sharon Steel initially filed for bankruptcy protection in April 1987. After emerging from bankruptcy in November 1990, ownership transferred to the Castle Harlan Group. By May 1992, with headquarters still located in Farrell, Pennsylvania, the company employed about 2,700 workers. Continued financial struggles led to a second bankruptcy filing in November 1992; layoffs affected its remaining unionized workforce of approximately 500 employees, reducing staff to nearly 100. The company ceased operations at its large Farrell mill along with two steel finishing plants located in Howard, Ohio. On July 20, 1993, Sharon Steel declared permanent closure of its principal mill and two smaller facilities—a decision endorsed by the United Steelworkers of America to protect pension benefits for 720 employees with over two decades of service. Around 900 other former workers were left without pension coverage. In the aftermath of bankruptcy proceedings, Farrell was designated a distressed municipality under Pennsylvania’s Act 47 and received a $650,000 state loan due to Sharon Steel’s role as the town’s largest employer.
New ownership
Following its inability to restart operations after bankruptcy, Sharon Steel was acquired in December 1994 by the UK-based Caparo Group. The Farrell facility was rebranded as Caparo Steel Co., where steel production recommenced utilizing an electric arc furnace, while the blast furnace was dismantled. Subsequent financial struggles led to the sale of much of the plant’s machinery in 1998 to Switzerland’s Duferco Group, which renamed it Duferco Farrell Corp.. After acquiring the plant in 1999, Duferco maintained employment for several hundred workers at the Farrell site.
In 2006, attempts to demolish the abandoned Sharon Steel mill were unsuccessful in bringing down the electric arc melt furnace building, which Caparo had operated until selling its equipment to Duferco in 1998. The location was then cleared for future redevelopment.
Sharon Coating LLC (formerly Sharon Steel Corp.) entered a joint venture ownership structure in 2007 when Russia’s Novolipetsk Steel (NLMK) partnered with Duferco. NLMK fully acquired the Farrell mill in 2014. By 2023, ownership of Sharon Steel had transferred to NLMK Pennsylvania, a division within the NLMK Group.
As of 2024, the Farrell mill was engaged in converting slabs into steel coils without employing blast or electric furnaces. Meanwhile, adjacent properties owned by Caparo Group underwent demolition of outdated Sharon Steel structures. That year, NLMK introduced a $95 million walking beam furnace at Farrell, supporting a workforce of approximately 750 employees. This furnace, manufactured by Tenova, was originally planned during Duferco’s management in 2006 but only came to fruition following NLMK’s takeover in 2014.
Midvale, Utah
In 1990, Sharon Steel reached the largest Superfund settlement within bankruptcy court with the EPA and Utah authorities to finance cleanup efforts at its Midvale tailings location. In 2018, under Administrator Scott Pruitt, the EPA considered reopening access to the Sharon Steel Superfund site for public visitation.
Fairmont coke works
The Fairmont Coke Works in West Virginia was operated by Sharon Steel after its acquisition from Standard Oil in 1948 until its closure in 1979. The company faced federal pollution penalties amounting to $300 million; however, these fines were dismissed in 1982 when Sharon agreed to oversee hazardous waste remediation. In 1983, permanent disposal of hazardous waste was prohibited at Fairmont; Sharon challenged this ruling but was mandated in 1985 to implement pollution controls. The site was designated a Superfund location in 1996. By 2016, the EPA was engaged in negotiating cleanup plans, and by 2022, the Fairmont City Council explored redevelopment options including potential use for autonomous vehicle testing facilities.
See also
External links
- "Tube Mill Operator" and "Hot Strip Mill Operator", Norman Rockwell artworks featured as advertisements for Sharon Steel Corporation in 1968
- Photograph of Sharon Steel Corporation Farrell Works circa 1946, Flickr