Service Centers

Lee Steel Files for Chapter 11 Bankruptcy
Written by Sandy Williams
April 14, 2015
Lee Steel Corp, a privately owned steel service center in Novi, Michigan, filed for Chapter 11 bankruptcy protection on April 13, 2015. In a court filing the company cited “financial difficulties resulting from the present severe collapse in steel prices.” The company listed debt of approximately$10.8 million.
The vast majority of the debt owed is to steel suppliers, both domestic and foreign. Based on a quick analysis of the filing, approximately $10.1 million is owed to foreign, Canadian and U.S. steel suppliers.
Lee Steel owes $5.2 million to foreign steel suppliers with Tata Steel (UK & Scotland) leading the pack with $3.1 million owed (combined).
Canadian supplier Essar Steel Algoma is owed $2.5 million. Just about all of the U.S. steel mills have some exposure but, combined, the U.S. producing mills are owed $2.4 million.
Lee Steel, founded in 1947, provides a full range of flat rolled steel, including hot rolled, cold rolled and coated products. In September 2014 the company finished installing its new EPS Eco-Pickling Coil Line at their Metro Detroit facility in Romulus, Mich. The facility also features twin state-of-the-art 72″ Braner-Loopco Turret Head slitting lines with computer-controlled Shape-Correction Cluster Levelers.
The Grand Rapids location features a Herr-Voss strand Extensioner slitter and Red Bud Industries Multi-Blanking Line with Stretcher-Leveler.

Sandy Williams
Read more from Sandy WilliamsLatest in Service Centers

Galvanized steel prices slip while demand remains flat: HARDI
Galvanized steel prices dipped to ~$48/hundredweight in August from the $50-59/hundredweight range during the month of July.

Mill Steel relocating Texas facility to Port of Houston
Mill Steel Co. announced it is relocating its Houston operations to a bigger facility at the Port of Houston.

Olympic taps Anza for GM role at Connecticut location
Olympic Steel Inc. has promoted Vincent Anza to the role of general manager for its Milford, Conn., facility.

Friedman Industries’ profits jump in its fiscal Q1
Friedman Industries’ fiscal first-quarter earnings nearly doubled from a year ago.

Russel Metals hits recent revenue high as Q2 shipments surge
Russel Metals posted its strongest quarterly revenue in three years, fueled by higher steel prices, steady demand, and near-record shipments across its service center network.