Sterling still into steel

STERLING – The old steel mill shut down a decade ago, ending a chapter in Sterling’s history.

But the mill doesn’t sit empty.

In fact, 270 people now work there for Sterling Steel Co. Fifty others are employed with on-site contractors such as security. That's far fewer than the 1,400 employed by Northwestern Steel and Wire when it closed May 20, 2001.

Still, Sterling Steel, owned by Carthage, Mo.-based Leggett & Platt, does the same type of work as the former company. It specializes in making rods.

The other businesses on the old mill site are Rock River Lumber & Grain and Sterling Rail Services, a freight car repair shop.

In 2002, Leggett & Platt bought a portion of the mill for its work.

The company, which makes metal and wire products, was a Northwestern customer. It needed a new supplier, so it decided to reopen the plant.

The rod made at the plant is drawn down into wire that is used by various Leggett & Platt factories or sold to outside customers. Most of the rod is shipped by rail to customers, who are mainly in the Midwest and South. The end products are used in such things as mattresses, furniture, bale ties, and certain automotive applications.

Sterling Steel, like Northwestern before it, uses scrap steel to make its products.

The rod mill is open all the time. The melt shop, which contains a 400-ton furnace, is open only on weekends because of lower electricity rates. Still, the company pays $15 million a year for electricity, said Andrew Moore, its president and general manager.

The steel furnace is the largest in North America, he said. Others prefer smaller ones for the sake of flexibility.

“If you make a mistake, it’s 400 tons,” he said.

Leggett likes the larger furnace because of the consistency, Moore said.

Most of the current employees worked at the former steel mill. The company expects many retirements in the coming years, so it is training younger workers to fill those jobs. Sterling Steel probably will start hiring again within the next year, Moore said.

The employees are organized, just as they were with Northwestern. They are represented by the U.S. Steelworkers.

Workers get paid more when the plant does better, Moore said. So when the plant is down for maintenance, everyone works hard to get it back up and running — “all hands on deck,” Moore said.

An electronic sign hangs high above the machinery, so employees can see how well they’re doing. From that, they can figure out how much they’ll be paid.

As with other local plants, the biggest threat is foreign competition, particularly China. For labor-intensive work, China has "somewhat of an advantage," Moore said.

“That’s one of our worries,” he said. “The trade laws aren’t always being enforced.”

He contends that China competes unfairly.

Over the years, Sterling Steel has kept about the same number of employees, despite the economic downturn since 2008. The plant is efficient, keeping costs low, Moore said.

Also, Sterling Steel has a greater commitment to safety. For months at a time, the plant has no injuriesl, a superb record for what is known as a dangerous industry, Moore said.

“Northwestern didn’t have the same commitment we have at Sterling Steel,” he said.

Moore started out in the safety department at Northwestern in 1979. That’s when the company was at its pinnacle of employment – with 4,678 on the payroll – since it had been founded a century earlier.

In his last years at Northwestern, Moore headed human resources.

At Northwestern, employees were hampered by their equipment.

“It was not a low-cost operation. There was a lack of investment,” he said. “It was put out of business by low-cost foreign steel.”

Also, Northwestern’s labor contracts and pension plans weren’t affordable, he said.

He called the plant’s closure “one of the worst days of my life.” But he said he’s glad the new company is committed to Sterling.

But he said Sterling Steel will never be as big as Northwestern.

“We’ll never be the mill,” he said. “Sterling Steel is successful because of its people. We’re fortunate to hire good people, making steel in Sterling and making it correctly.”