Columbus Steel Castings Foundry
Production has stopped at Columbus Steel Castings Foundry after many weeks of layoffs and cutting back on production. This will be the third outage this year with steel foundries. Others were:
Many of these companies rely on:
- Heavy-equipment manufacturing
Unfortunately these have been declining since a boost of capital spending earlier this decade.
Filing for Chapter 11
Columbus Steel Castings’ holding company, Constellation Enterprise LLC filed for creditor protection under Chapter 11 of federal bankruptcy code, indicating its goal to restructure the dept obligations.
The bankruptcy filing includes three other manufactures:
- Commercial Metal Forming
- Jorgensen Forge Corporation
- Zero Manufacturing
These three manufactures will continue to operate. Constellation Enterprise told that some of their lenders have talked about purchasing those companies following the reorganization. The four companies total debts equal up to $238 million.
There is also talk of an unnamed source intending to buy Columbus Steel Castings. This will need to have a purchase agreement and an approval of the sale by the bankruptcy court. The value and future plans of the buyer are still not known.
Constellation traced the problems of Columbus Steel to a 2015 furnace failure. This cost roughly $15 million to repair and also disrupted production for six weeks also halting the steel castings delivery to its customers.
“Columbus is determined to continue to support its customers,” Columbus Castings interim CEO Gary Bernhardy stated in a release. “We continue to ship from inventory, having shipped much of our products to meet customer needs prior to our temporary production hiatus.”
Often described as the largest steel casting companies in the U.S. operating from a single location.
The supplied castings for:
- Passenger rail cars
- construction equipment
For Full Article Click: http://foundrymag.com