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Geneva May Return to Normal by February
VINEYARD, UTAH -- Geneva Steel, one of the major employers in Utah
County, could be back producing steel as early as February, if market
conditions and finances work out. The steel mill has been shut
down since last fall.
Ken Johnsen, Geneva Steel's president and CEO, said the company has
repaid its outstanding debts and is hoping to receive an extension on
reducing its line of credit. According to an agreement reached on
Nov. 14 when the company announced the temporary shutdown, Geneva had
until Dec. 21 to pay off debts and to reduce its line of credit from
$8.25 million to zero. The steel mill received an extention on its
line of credit until Jan. 10 and is looking to obtain another one. If
the terms of the agreement are not met, the company will have to file
Chapter 11 bankruptcy for the second time.
But an extension on the credit line will not mean the plant will be
opening up right away. Johnsen said the plant's opening is not
directly related to finances, but to the market. The worry now
is about foreign imports again pushing down the market for
steel. Geneva was originally shut down because market prices were not
high enough for the plant to cover its operating expenses.
The company has asked the U.S. government for a steel industry
bail-out bill - one that would include higher tarrifs and penalties
from foreign steel producers.
Source:
Geneva may be back in business by February
Provo UT Daily Herald pgA1 28Dec01 B4
By Donald W. Meyers
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