Bear Metallurgical in Summit Township filed for Chapter 11 bankruptcy protection Tuesday. Under the reorganization, Bear, which employs 29 people, would continue operations while trying to sell the business.
SUMMIT TWP — The Bear Metallurgical Co. on Tuesday filed for a bankruptcy reorganization.
The company and its corporate parent, Gulf Chemical & Metallurgical Corp., filed a voluntary petition in U.S. Bankruptcy Court for the Western District of Pennsylvania under Chapter 11.
According to Bear, it’s seeking bankruptcy protection to deal with financial debts and to seek a sale of the business.
Under the reorganization, Bear, which employs 29 people, would continue normal operations while trying to sell the business.
David Carey, company director and general manager, said a downturn in the industry is the issue.
“Marketing conditions are poor because steelmaking is down,” Carey said.
He attributed part of the reversal of fortune to overseas competition, primarily from South Korea. That East Asian nation overtook China as a steel importer.
“We’ve been watching over it for a years,” Carey said.
According to Bear, the Chapter 11 process would help it through the downturn.
Carey said Bear will continue operating during the process. He said there would be no layoffs.
“This won’t affect staffing at all,” he said.
Earlier this year, the company laid off eight workers.
Carey said potential buyers for Gulf and/or Bear are being sought.
“Any options are on the table,” he said.
The main building, which is 100,000 square feet, is on a 15.5-acre site on East Butler Road.
Bear, which was started in 1991, is the sole independent converter of ferrovanadium, an alloy composed of iron and vanadium, and the largest producer of ferromolybdenum, a hardening agent, in the United States.
