FARRELL, PA. Duferco spins off operations into jointly owned venture

Duferco says it has joined forces with a leader in thespecialty steel market.
By HAROLD GWIN
VINDICATOR SHARON BUREAU
FARRELL, Pa. -- The ownership of some of the equipment at Duferco Farrell Corp. may have changed, but the steel operations remain the same.
Bob Miller, chief financial officer, said Duferco entered into a 50-50 joint venture with Gibraltar Steel Corp. of Buffalo, N.Y., on Dec. 1.
Duferco split off its cold-roll specialty steel operation into a separate limited liability corporation and then sold 50 percent of the new company's assets to Gibraltar.
The result is a new, jointly owned company -- Gibraltar DFC Strip Steel LLC.
There's no change in operations, but 80 of Duferco's 580 employees now work for the new company. The workers experienced no change in wages or benefits, he said.
Terms of the asset sale weren't disclosed, but Miller said the proceeds will be reinvested in plant operations.
Automobile steel
The new company took over operation of Duferco's Sendzimir cold-roll reduction mill, which reduces the gauge of steel coils; hydrogen annealing furnaces; a temper mill to improve the steel's surface; and a slitter for cutting coils to specific lengths to meet customer needs.
Most of the steel coming from that operation goes to the automobile industry, Miller said.
Duferco retains control of its hot strip mill, pickle line and tandem cold-roll mill, he said.
Gibraltar is No. 1 in the cold-roll specialty steel market, a position that will greatly enhance products coming out of the new company, Miller said.
"We're really joining forces with the industry leader," he said.
The plant, located on Broadway Avenue, was once the Sharon Steel Corp. but was sold to Caparo Steel Co. in bankruptcy court in late 1994. Caparo sold the operation to Duferco in early 1999.
The sale includes equipment, but Duferco retains ownership of the land.