MAHONING COUNTY With new name, Canfield Metal stands on its own

The company is considering expansion to fuel growth.
THE VINDICATOR, YOUNGSTOWN, OHIO
By DON SHILLING
VINDICATOR BUSINESS EDITOR
CANFIELD -- A Canfield coating company has completed its split from struggling Wheeling-Pittsburgh Steel.
Pittsburgh-Canfield Corp. now calls itself Canfield Metal Coating.
The name change makes it clear the West Main Street business is operating as a stand-alone company, said James Bruhn, Canfield Metal president.
Officials chose the new name because it emphasizes the company's Canfield roots and its business of providing specialty coatings for steel, he said. The heart of the operation is an electro-galvanizing line, which applies zinc coating to steel using electrical charges. It also paints and slits steel coils.
Wheeling-Pitt, a steelmaker based in Wheeling, W.Va., operated the company until June 2001 when WHX Corp. bought the business.
WHX, which is the holding company of Wheeling-Pitt, didn't want the Canfield business to be affected by Wheeling-Pitt's bankruptcy case. The steelmaker filed for bankruptcy protection in 2000.
Pension plan
Now that Canfield Metal Coating is no longer part of Wheeling-Pitt, company officials were surprised that its pension plan was taken over recently by the federal Pension Benefit Guaranty Corp. along the steelmaker's plan, Bruhn said.
He said the Canfield company's pension plan is secure and officials are trying to have it removed from PBGC oversight. The federal agency takes over underfunded plans so that retirees can still receive pensions.
Bruhn said Canfield Metal Coating is prepared to move its pension plan into the Steelworkers Pension Trust, which is run by the United Steelworkers of America and includes thousands of companies.
Canfield Metal intends to decide by August whether to invest in equipment that would apply powdered coatings, which would open new markets, he said. Bruhn wants to increase company sales from $35 million to between $50 million and $70 million.
New contract signed
Bruhn said he is excited about the company's growth prospects because of a new four-year labor contract signed with the USW in March.
Union members agreed to work-rule changes that combine jobs. The changes allow workers to help each other more and give the company additional flexibility, which will hold down operating costs, Bruhn added.
He said the contract provides raises, mostly in lump-sum payments, and changes the bonus plan. Caps were removed so that workers can receive unlimited bonuses for improved production, cost reductions and other measures, he said.
Business is improving, and the company is looking to hire two or three workers to its 40-person staff, he said.
shilling@vindy.com