Last order finished at McDonald Steel mill

Operations cease; 80 workers affected

McDONALD — McDonald Steel has completed its last customer order and operations of its 14-inch hot rolled steel rolling mill — the last operating mill at McDonald Steel — have ceased, according to the company.

“Although it’s a bittersweet moment in time, we look upon the last approximately 40 years as a success,” the company said in a statement.

McDonald Steel produced nearly 1 million tons of hot rolled shapes at the Ohio Avenue facility, which the company acquired in 1981 after U.S. Steel closed it.

“In the process, we paid over $200 million in wages and salaries and invested nearly $40 million in capital improvements and regular maintenance activities,” but over the last several years “mill operations had become increasingly problematic,” the company stated.

Changeover times were on the rise, the scrap rate increased because of setup challenges and quality issues, and the mill produced fewer tons of finished product per hour.

“The mill was showing its age and the problems were compounded by a marketplace that demanded shorter production runs,” the company said.

The company announced June 27 it would cease operating the 14-inch rolling mill by the end of the third quarter, and it would exit the special shapes business toward the end of 2023. The third quarter ended Sept. 30.

About 80 employees were affected.

The last customer order was processed Thursday.

Beyond Thursday, warehouse operations will continue through the first quarter of 2024.

“We would like to thank the entire labor force and especially our mill crew. The dedication of the crew throughout this process has been outstanding,” the company said. “Additionally, although employment will be interrupted, the labor market in the Valley is strong and most McDonald employees seeking employment elsewhere have been successful.”

Union employees at the mill were jointly represented by United Steel Workers Local 1307 and Teamsters Local 377. Leaders with the groups were able to secure the workers a shutdown payment.

McDonald Steel Corp. was founded in 1981 by a group of local investors who saw opportunity in the recently shuttered McDonald Works of U.S. Steel.

Over the past 42 years, the management and employees of McDonald Steel have expanded its product offerings to more than 500 symmetrical and asymmetrical hot-rolled shapes. The shapes were used in the production of bridge decking and expansion joints, wheels for on- and off-road applications, automotive door hinges, spigot sections and a number of applications in the rail and rail car industry, according to its website.

In October 2022, McDonald Steel announced a subsidiary, Mac Steel GSC Inc., acquired the assets of Cleveland-based General Steel Corp., a steel service center specializing in the processing of steel plate.

Operations at General Steel are unaffected by the mill’s closure and McDonald Steel will continue to supply joint bars to the railroad industry, the company said.