Steel division 2 filing for bankruptcy amid weak dollar
Steel division 1 filed for bankruptcy on Friday, according to the filing in federal bankruptcy court in Pittsburgh.
The filing is the latest in a series of bankruptcies for the company.
Steel division 2 was formed in 1997 to create steel tubing and manufacturing facilities in North America.
The company is also one of the few companies that make the type of steel tubing used in aluminum.
It is owned by the state of Pennsylvania, which owns all of the steel used in the industry.
Pennsylvania is the largest customer of steel in the U.S. with $3.5 billion worth of orders in 2013, according the state’s Department of Natural Resources.
In August, the state announced that it would not seek approval for the proposed Keystone XL pipeline.
The company’s stock has been trading around $20 per share, but the filing is an indication that investors may be willing to give the company a higher price target.
In August, Reuters reported that the bankruptcy filing showed the company’s earnings and operating expenses would not be sufficient to survive without the state.