More soaking pits were installed as well as a plant to supply the BOP with oxygen. Two pickle lines were also added along with the slitters.
The year 1958 saw another major expansion of the plant. A new blast furnace was constructed (Number 2), two 110 ton BOP vessels, and the related support equipment for the BOP and blast furnaces also had their capacity increased. Gas cleaning systems were installed for the melt shop as well.
Two Rust slab reheat furnaces were installed to handle stainless steel, as well as the massive grinder and slab unpilers. The grinders, unpilers, and the pusher/bumper units for the two furnaces were supplied by Composite Forgings, Inc.
Between 1960 and 1964 one more 110 ton BOP vessel was added bringing the 110 ton vessel count to three. McLouth also became the first company to use computer controls on a hot strip mill on November 1, 1962. Significantly, the first "straight stick" slab caster was installed during this period. It was the first in the United States.
The year 1958 saw another major expansion of the plant. A new blast furnace was constructed (Number 2), two 110 ton BOP vessels, and the related support equipment for the BOP and blast furnaces also had their capacity increased. Gas cleaning systems were installed for the melt shop as well.
Two Rust slab reheat furnaces were installed to handle stainless steel, as well as the massive grinder and slab unpilers. The grinders, unpilers, and the pusher/bumper units for the two furnaces were supplied by Composite Forgings, Inc.
Between 1960 and 1964 one more 110 ton BOP vessel was added bringing the 110 ton vessel count to three. McLouth also became the first company to use computer controls on a hot strip mill on November 1, 1962. Significantly, the first "straight stick" slab caster was installed during this period. It was the first in the United States.
With the completion of the Gibraltar facility, attention turned to innovation in Trenton
Meanwhile, expansion would continue in neighboring Gibraltar, as in 1954 construction of a cold-rolling facility was announced, to be erected just south of the Trenton Channel Power Plant.
This property the company acquired that was once owned by the Gibraltar Steel Corporation. McLouth had failed to get the proper financing to construct another integrated mill, so plans were drawn up for a stand alone cold rolling mill. Original plans called for five additional blast furnaces, but that was based upon the completion of the All American Channel. Without the channel, ore and coal haulers could not bring in the required raw materials.
In May 1962, McLouth personnel visited the Dillingen Steel Works in Germany, where continuously cast slabs larger than 100 square inches were first cast. Some sixteen months later McLouth was operating a "straight stick" casting machine.
McLouth Steel was the first plant in North America to cast 100% of its steel by the continuous caster method. They were also one of the first to use computer programs in an industrial process, utilized for safety purposes to keep power from cutting out. By 1968, expansion at the facility continued as $105 million program to expand the hot metal facilities increased capacity from 1.8 million tons per year to 2.4 million.
Despite a devastating fire that destroyed the pickling tower in 1970, McLouth's safety track record was otherwise excellent for facilities as extensive as theirs, and during the 1970s they employed 5,000 people at what was then Michigan's highest prevailing wage provider. In this heyday, the complex was also Detroit Edison's second largest consumer of power (after the city of Detroit itself).
This property the company acquired that was once owned by the Gibraltar Steel Corporation. McLouth had failed to get the proper financing to construct another integrated mill, so plans were drawn up for a stand alone cold rolling mill. Original plans called for five additional blast furnaces, but that was based upon the completion of the All American Channel. Without the channel, ore and coal haulers could not bring in the required raw materials.
In May 1962, McLouth personnel visited the Dillingen Steel Works in Germany, where continuously cast slabs larger than 100 square inches were first cast. Some sixteen months later McLouth was operating a "straight stick" casting machine.
McLouth Steel was the first plant in North America to cast 100% of its steel by the continuous caster method. They were also one of the first to use computer programs in an industrial process, utilized for safety purposes to keep power from cutting out. By 1968, expansion at the facility continued as $105 million program to expand the hot metal facilities increased capacity from 1.8 million tons per year to 2.4 million.
Despite a devastating fire that destroyed the pickling tower in 1970, McLouth's safety track record was otherwise excellent for facilities as extensive as theirs, and during the 1970s they employed 5,000 people at what was then Michigan's highest prevailing wage provider. In this heyday, the complex was also Detroit Edison's second largest consumer of power (after the city of Detroit itself).
The ushering of a new era of industrialization presents problems for the company
However, cracks began to show toward the end of the 1970s, as overseas and non-union steelmakers began making inroads Downriver, as they were doing to firms such as Bethlehem Steel in Pennsylvania. At the start of the 1980s, payroll had been trimmed from 5,000, but was still solid at 3,775 - still very soluable.
Management began asking for concessions as early as September 1980, they asked for a one year wage freeze. The employees responded with a 3 day strike. Five months later (February 1981), having realized a $56 million loss for the company, management asked for a 2-year freeze for cost-of-living adjustments. The employees said no.
In December 1981, the company defaulted on $166 million in loans and were forced to file Chapter 11 bankruptcy for the first time. The union then almost immediately accepted $14 million in concessions, plus a ten percent wage cut for non-union workers.
Then came the shocking news in November 1982: Outside investor Cyrus Tang purchased the firm for $465 million. A total of 162 additional jobs would be cut as part of a six-year contract that would require more employee givebacks. By this time the company's official name was changed to McLouth Steel Products Co.
Management began asking for concessions as early as September 1980, they asked for a one year wage freeze. The employees responded with a 3 day strike. Five months later (February 1981), having realized a $56 million loss for the company, management asked for a 2-year freeze for cost-of-living adjustments. The employees said no.
In December 1981, the company defaulted on $166 million in loans and were forced to file Chapter 11 bankruptcy for the first time. The union then almost immediately accepted $14 million in concessions, plus a ten percent wage cut for non-union workers.
Then came the shocking news in November 1982: Outside investor Cyrus Tang purchased the firm for $465 million. A total of 162 additional jobs would be cut as part of a six-year contract that would require more employee givebacks. By this time the company's official name was changed to McLouth Steel Products Co.
Profits were turned in 1983, but by 1987 debt resurfaced in a big way: $250 million. By now, the workforce was down to 2,000 unionized and 400 non-unionized, almost 40% loss from the start of the decade. Cyrus Tang vanished from the scene as negotiations continued over the next two years - which resulted in another $85 million loss, but control of the company was basically in the hands of the employees, at least symbolically: the new official name would be "McLouth Steel: An Employee Owned Company."
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McLouth envisioned new life in the early 1990s with the rumors that businessman Maurice Taylor was interested in purchasing the complex. However, due to external problems, Taylor would relinquish this bid. Despite this, by March 1995 the company announced it was committed to across-the-board improvements in its operation, both in the plants as well as with employee relations.
These possibilities would not come easily; in fact, McLouth would seek bankruptcy protection in the fall of 1995 for the second time in the company's history.
These possibilities would not come easily; in fact, McLouth would seek bankruptcy protection in the fall of 1995 for the second time in the company's history.
Another possible deal to save the company became known in December of 1995, but would involve a very tough proposal for the remaining workforce: they were asked to vote on a 23.5% paycut across the board in order to keep finances solvent. By a very close vote, the motion was ratified in February of 1996. However, production levels sagged considerably in the months following, which brought Maurice Taylor back on board again for his second potential takeover bid. Within the month, the takeover bid was again dropped and creditors were forced to act in order to recoup any losses they had garnered over the prior few years. Subsequent talks came to a halt about the same time.
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"McLouth's dead... it's bankrupt... I'll use a little elbow grease and clean that place up... I saw two hundred guys, and maybe twenty were working. One hundred and eighty were doing nothing but moaning and groaning, and some were asleep. You've got to change that." |
A bid by an outside firm from Akron, Ohio failed to materialize. Management then came up with yet another recovery plan, which the News-Herald trumpeted as being perhaps the ultimate answer to the company's malaise. By mid-May 1996, the proposed improvements were seen as underwhelming at best, but a silver lining was realized when the company did not liquidate.
An auction was announced in June 1996 to purchase all or part of the Trenton and Gibraltar properties. What happened next was perhaps the easiest guess: Maurice Taylor yet again asked to get in on a purchase of McLouth. Before his request had a chance to cool, it was announced the company was out of money and was ready to liquidate. By this time, workforce numbers were halved to 1,200 unionized and 150 non-unionized. Assets were $136 million, Liabilities were $360 million.
An auction was announced in June 1996 to purchase all or part of the Trenton and Gibraltar properties. What happened next was perhaps the easiest guess: Maurice Taylor yet again asked to get in on a purchase of McLouth. Before his request had a chance to cool, it was announced the company was out of money and was ready to liquidate. By this time, workforce numbers were halved to 1,200 unionized and 150 non-unionized. Assets were $136 million, Liabilities were $360 million.
The new Michael Wilkinson era promises a bright restart possible, with mixed results
On the heels of a $1.8 million financing project announced in June 1996 and subsequently approved by a judge, Michael Wilkinson was announced as the new owner of the facility. The news initially did not meet with favor from the workers, as they feared further cuts and shutdowns. Despite the initial unhappiness, it was announced that, thanks to an additional grant of $1.47 million levied by the Downriver Community Conference (DCC), a total of 310 employees would be retrained. This was short-lived as well as, due to unexplained reasons, the DCC lost the grant in mid-August of 1996. Power was cut to the facility in late August, but was soon restored thanks (presumably) to a deal with Detroit Edison.
Wilkinson, meanwhile, was hard a work trying to project a new image for the company, which would be renamed DSC Steel in the spring of 1997. However, all activity at the site would cease not too long afterward, and would remain mostly vacant and un-utilized for the the next five years. The Gibraltar facility was not included in the original sale to DSC but was able to start up operations much quicker than the Trenton facility. From 1996 to 2006 it was operated by Detroit Cold Rolling, then sold off to Steel Rolling Holdings that year. Following some demolition work at the Trenton facility in 2004 (including one instance where an attempted implosion of the blast furnaces failed - only one would fall), minimal operations began at the Trenton plant in 2006 under DSC chairman Wilkinson, but production would not come close to duplicating its original level of effectiveness. |
In addition, the work was still being accomplished upriver by Great Lakes Steel, which had larger facilities, was more up to date, and therefore more efficient using the same raw materials. In other words, it was becoming clear that two steel facilities may have been too many.
The condition of the land upon which the facility sat became worrisome to members of the Department of Enrivonmental Quaity (DEQ), as well as the EPA. On September 14, 2007, a warning letter was sent to DSC marking a total of twenty violations, including the marking, storage and general overall condition of hazardous waste containers. DSC would act positively on this at first: from October 2007 to February 2008, a site cleanup realized a total of 1,091 containers being removed, 2,744 PCB capacitors were hauled away, 39,783 gallons of PCB oil were drained, with the subsequent removal of an additional 1,877 containers, all at a cost of $2 million.
In 2009, further environmental concerns came to the surface when a thick green liquid (later identified as leachate) was detected in nearby Monguagon Creek, which empties into the Trenton Channel of the Detroit River. The pH level of the creek was detected as 9.83, where a normal reading is 9. DSC responded by building a barrier of clay backfill and a non-reactive barrier wall to the property's north end. By this time, the Trenton complex was basically mothballed, and many questions about its future use continued to run rampant, including a possible use as an armor-plating facility. Its basic electrical superstructure was ripped out in summer 2009; the only powered section of the plant after that time was the office section, run by diesel generator.
The Gibraltar facility has had much better news. In July 2015, it would be announced a total of $2.2 million in grants would be awarded to redevelop the site in conjunction from the Department of Environmental Quality. Under the operation of Ferrous Cal Company, $53 million would be spent to upgrade the plant and grounds.
The condition of the land upon which the facility sat became worrisome to members of the Department of Enrivonmental Quaity (DEQ), as well as the EPA. On September 14, 2007, a warning letter was sent to DSC marking a total of twenty violations, including the marking, storage and general overall condition of hazardous waste containers. DSC would act positively on this at first: from October 2007 to February 2008, a site cleanup realized a total of 1,091 containers being removed, 2,744 PCB capacitors were hauled away, 39,783 gallons of PCB oil were drained, with the subsequent removal of an additional 1,877 containers, all at a cost of $2 million.
In 2009, further environmental concerns came to the surface when a thick green liquid (later identified as leachate) was detected in nearby Monguagon Creek, which empties into the Trenton Channel of the Detroit River. The pH level of the creek was detected as 9.83, where a normal reading is 9. DSC responded by building a barrier of clay backfill and a non-reactive barrier wall to the property's north end. By this time, the Trenton complex was basically mothballed, and many questions about its future use continued to run rampant, including a possible use as an armor-plating facility. Its basic electrical superstructure was ripped out in summer 2009; the only powered section of the plant after that time was the office section, run by diesel generator.
The Gibraltar facility has had much better news. In July 2015, it would be announced a total of $2.2 million in grants would be awarded to redevelop the site in conjunction from the Department of Environmental Quality. Under the operation of Ferrous Cal Company, $53 million would be spent to upgrade the plant and grounds.
The saga continues amongst local authorities since 2014
The general public raised awareness, increasing by the year, that something had to be done to the Trenton facility, including demolition, clearing and decontamination of land to be reclaimed by the city for possible recreational use. DSC would continue in its efforts to repurpose the property, although not all their efforts were done with legality in mind.
At a September 9, 2014 Trenton City Council meeting, DSC officials submitted a memorandum desiring the property to become a "transportation hub," bringing residents to mind of an earlier effort in the millennium to place a possible deep-water port on the site, which would have been run a company titled the RTRR (Riverview-Trenton Railroad), ran in part by Ambassador Bridge owner Manuel "Matty" Mouron. This new proposal would utilize docks, an existing rail spur, and roads to ship and store goods. Part of the proposal would involve a fleet of ten semi-trucks, each carrying 29,500 lbs gross weight, traversing West Jefferson and Sibley up to seven times per week.
At a September 9, 2014 Trenton City Council meeting, DSC officials submitted a memorandum desiring the property to become a "transportation hub," bringing residents to mind of an earlier effort in the millennium to place a possible deep-water port on the site, which would have been run a company titled the RTRR (Riverview-Trenton Railroad), ran in part by Ambassador Bridge owner Manuel "Matty" Mouron. This new proposal would utilize docks, an existing rail spur, and roads to ship and store goods. Part of the proposal would involve a fleet of ten semi-trucks, each carrying 29,500 lbs gross weight, traversing West Jefferson and Sibley up to seven times per week.
This, the company stated, was an honest effort to start generating revenue in order to start paying the city owed back taxes dating back to 2007. Company attorney James Cambridge said these efforts would "clarify approvals we already have," continuing in part, "Without the support of the city, our fate seems certain... it will be lost... It's our hope to make that site vibrant again." Council members, led by Timber Baun-Crooks, were very vocal in opposition. Cambridge may have sensed what the Council and residents would rather have, and dispelled those notions by saying creation of a possible park or marina would be "naïve."
"People have lost their jobs, lost their livelihood, and now you're asking us to lose our environment." |
"You (City of Trenton) can own it if you want. If you don't want us to be in business, then vote 'no.' Then, you'll get the property back and watch what Wayne County will do with it." |
An interesting proposal made by legendary Detroit Lions running back Billy Sims would follow in October, 2014. At the October 6 Council meeting, Sims presented a plan to turn the complex into a powdered-milk processing plant. Sims was aided in representation by the American Chinese Canadian Russian Investment group, known as the ACCR. The plan was to make McLouth a dairy processing facility to "manufacture products for export." Despite council trepidation, Trenton mayor Kyle Stack did praise the plan for its transparency. Sims touted the location as ideal due to the proximity of the Trenton Channel port. Promised in the plan were employment of 125, with 40,000 tons of goods produced annually, without toxins. This plan apparently did not pass the initial talk stages.
Barely a week later, Trenton council began anew with concerns about the repurposing of the site. Officials communicated mutual distrust and disrespect toward DSC. |
Yet another proposal of rebranding by the firm was denied by the council; a resolution to table the motion for further consideration was likewise shot down. There was no representation from DSC at the meeting, but Mayor Stack was determined to move forward with the denial anyway. As recently in 2005, steelmaking had still been considered a viable use for the facility; this was in a known resolution signed at the time. But DSC had performed many activities without council's consent, including the production of commercials and music videos (likely Kid Rock's video for "Let's Ride").
The most alarming of these undocumented activities was the shipment of road salt to the property direct from the country of Cyprus. Mayor Stack said that such a timetable for overseas delivery ranged from 45-60 days, which would have given the company plenty of time to send the city an official note, which did not occur. City Councilwoman Mary Ellen McLeod responding by commenting, "Once it's there, then what? They aren't asking permission anymore..." City administrator Jim Wagner replied, "I think that answers your question about the relationship we have with DSC."
It would appear the issue of unlicensed activity would be somewhat rectified the following year, as attorney Steven Ribiat, first in contact with the situation in October 2013, announced a potential settlement in March, 2015. This was in answer to a lawsuit filed by Trenton earlier. Definitions of what was allowed at the site were clearly specified. For example, they were allowed to manufacture, import/export materials (which included metals, salt, stone aggregate, plastics, aluminum ingots, lumber, steel, other raw materials including textiles and cotton), transfer machinery, equipment and products via water, rail and truck (everything required some sort of advance notice). What they could not do was store hazardous materials such at petroleum coke, or use the yard as a truck depot or general railyard. The city would have the right to conduct inspections, but needed a 24-hour notice to DSC to do so legally.
It would appear the issue of unlicensed activity would be somewhat rectified the following year, as attorney Steven Ribiat, first in contact with the situation in October 2013, announced a potential settlement in March, 2015. This was in answer to a lawsuit filed by Trenton earlier. Definitions of what was allowed at the site were clearly specified. For example, they were allowed to manufacture, import/export materials (which included metals, salt, stone aggregate, plastics, aluminum ingots, lumber, steel, other raw materials including textiles and cotton), transfer machinery, equipment and products via water, rail and truck (everything required some sort of advance notice). What they could not do was store hazardous materials such at petroleum coke, or use the yard as a truck depot or general railyard. The city would have the right to conduct inspections, but needed a 24-hour notice to DSC to do so legally.
Finally, the problem about what to do was forcibly taken out of DSC's hands - seemingly for good - in April of 2017. Wayne County, led by Executive Warren Evans, seized the entire property due to the back tax problem returning in a big way, to the tune of $3.7 million.
The property was scheduled for re-evaluation, with Mayor Stack indicating that, while the city was not initially planning on purchasing the entire parcel, all options would nonetheless remain open. Instrumental in Wayne County's move were the offices of the EPA, the DEQ, and Congresswoman Debbie Dingell.
The property was scheduled for re-evaluation, with Mayor Stack indicating that, while the city was not initially planning on purchasing the entire parcel, all options would nonetheless remain open. Instrumental in Wayne County's move were the offices of the EPA, the DEQ, and Congresswoman Debbie Dingell.
Ongoing epilogue results in land clearing, but with initial alarms
In November 2018, the land would end up reverting to Ambassador Bridge owner Manuel "Matty" Moroun, whose Crown Enterprises firm purchased the site from the Wayne County Land Bank for $4 million. The timetable, which was quoted as being gradual in time, would allow two years to finish demolition of unstable buildings on-site (47 in all), and an additional four years for Crown Enterprises to fully implement a $20 million plan toward restoration of the site for repurposing as a possible automotive logisitics hub, although that was only one purpose that was discussed at the purchase.
After approximately a year, demolition began in earnest of the main plant building; however, it was halted in November, 2019 by the Michigan Department of Environment, Great Lakes & Energy (EGLE, the renamed Michigan Department of Environmental Quality) by a violations notice, citing the raising of a cloud of dust off an oven being dismantled in spite of the fact water was being poured on the structure. This would raise concerns about untreated asbestos not only at the oven, but the entire site perimeter. The demolition at the time was being handled by 21st Century Salvage and Next Generation Environmental, Inc. This was the second major stoppage at the facility, as a similar note had been issued regarding removal of galbestos at the plant facility the prior year.
Once cleared, dismantling once again, with nearly the entire steel structure but a memory by February, 2020. At this time, it is still not clear what the future options for the land are. Regardless of future use, land contaminants will need to be treated properly before the land can be utilized.
After approximately a year, demolition began in earnest of the main plant building; however, it was halted in November, 2019 by the Michigan Department of Environment, Great Lakes & Energy (EGLE, the renamed Michigan Department of Environmental Quality) by a violations notice, citing the raising of a cloud of dust off an oven being dismantled in spite of the fact water was being poured on the structure. This would raise concerns about untreated asbestos not only at the oven, but the entire site perimeter. The demolition at the time was being handled by 21st Century Salvage and Next Generation Environmental, Inc. This was the second major stoppage at the facility, as a similar note had been issued regarding removal of galbestos at the plant facility the prior year.
Once cleared, dismantling once again, with nearly the entire steel structure but a memory by February, 2020. At this time, it is still not clear what the future options for the land are. Regardless of future use, land contaminants will need to be treated properly before the land can be utilized.