Analysis
January 27, 2026
Alton Steel to close, cites competitive disadvantages
Written by David Schollaert
Alton Steel Inc. (ASI), a special bar quality (SBQ) steel producer, said it will close operations later this week. The move brings an end to nearly a quarter century of steel production in Alton, Ill.
The privately held company cited aging infrastructure, intense market competition, and industry consolidation as the primary forces behind the decision.
Continued operation had become “economically unsustainable,” according to local media reports.
Chris Ervin, who took the helm as CEO of the steelmaker last year and led the company through recent modernization efforts, described the shutdown as “an incredibly painful decision for everyone involved.”
Ervin added that ASI had worked for years to upgrade its facilities, but ultimately could not compete with larger, publicly traded steelmakers.
“The steel industry has changed dramatically,” Ervin said in a statement. “As a privately held company, we cannot access the capital required to compete with larger competitors that have newer facilities and modern equipment.”
The closure affects approximately 253 employees, along with contractors and local vendors, according to reports.
Alton Steel did not respond to a request for comment from SMU about the closure.
