Lukens Steel Company
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Lukens Steel Company, located in Coatesville,
Pennsylvania Pennsylvania (; ( Pennsylvania Dutch: )), officially the Commonwealth of Pennsylvania, is a state spanning the Mid-Atlantic, Northeastern, Appalachian, and Great Lakes regions of the United States. It borders Delaware to its southeast, ...
, is the oldest steel mill in commission within the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territori ...
. In 1995, it was one of the three largest producers of plate steel and the largest domestic manufacturer of alloy-plate. It is ranked fourth out of 24 public steel corporations in profitability, earning 14.8% equity five years in a row. The company produces carbon,
alloy An alloy is a mixture of chemical elements of which at least one is a metal. Unlike chemical compounds with metallic bases, an alloy will retain all the properties of a metal in the resulting material, such as electrical conductivity, ductilit ...
, and clad steel plates along with stainless steel sheets, strips, plates, hot bands, and slabs.


History


18th century

Isaac Pennock established The Federal Slitting Mill in 1793 on Buck Run, a tributory of Brandywine Creek about four miles south of
Coatesville, Pennsylvania Coatesville is a city in Chester County, Pennsylvania, United States. The population was 13,350 at the 2020 census. Coatesville is approximately 39 miles west of Philadelphia. It developed along the Philadelphia and Lancaster Turnpike beginning ...
.


19th century

After receiving a loan in 1810, Pennock went into a partnership with Jesse Kersey to form Brandywine Iron Works and Nail Factory. Kersey's father-in-law was Moses Coates, a member of the founding family of Coatesville. After seven years as partners, Pennock bought Kersey's share of the business and then leased it to his son-in-law, Dr. Charles Lloyd Lukens. The following year the mill became the first in the United States to produce boilerplates and soon joined the shipbuilding industry. In 1818, Lukens produced the iron for the first iron-hull vessel in the United States. Dr. Charles Lloyd Lukens died in 1825, leaving the steel mill to his wife Rebecca Lukens. This inheritance made Rebecca Lukens the first woman in the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territori ...
to be a part of the iron industry. She was also the first female chief executive officer of an industrial company. She became a huge icon for the steel mill when she saved it from bankruptcy by making the company the nation's chief producer of boilerplates. They were sent to
England England is a country that is part of the United Kingdom. It shares land borders with Wales to its west and Scotland to its north. The Irish Sea lies northwest and the Celtic Sea to the southwest. It is separated from continental Europe b ...
to be used in some of the first railway locomotives. When Rebecca retired in 1847 she became a silent partner with Abraham Gibbons, who was one of her sons-in-law, and was the sole manager of the mill. The company was known as A. Gibbons and Company. The following year Gibbons took on his brother-in-law, Dr. Charles Huston as a partner. Dr. Huston was also one of Rebecca's sons-in-law. In 1849 the men renamed the mill Gibbons and Huston. Gibbons had married Rebecca's oldest daughter Martha, while Dr. Charles Huston married the youngest Isabella. Not long after, Gibbons left the family business to become a co-founder of The Bank of Chester Valley. After Gibbons left, Isabella took the role as senior partner through her mother's estate. She also bought her sister Martha's share. Huston went on to build a new steam-powered mill in 1870. During 1881 the company started to produce steel and iron and changed the name from Gibbons and Huston to Charles Huston and Sons. After Rebecca died Isabella and Charles changed the name to Lukens Rolling Mill. With all the changes another mill had to be built in 1890 making the company the largest mill in the United States. Within the same year the mill changed from a family partnership to a corporation, converting the name to Lukens Iron and Steel. Several years later in 1897 Dr. Huston died leaving the company to his sons, Abram Francis Huston who became president of the company and Charles Lukens Huston who became works manager. By 1882 Charles Lukens Huston made it a part of his daily routine to go around the mill and meet all the employees and was proud to be able to greet them by name. He also performed sermons to the men and women that worked and wanted to listen. Sales offices began to open all over, including
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,
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,
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,
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and
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. Not long after the opening the mill became the largest producer of open-hearth steel and steel plates on the Eastern side of the United States.


20th century

The Lukens Main Office Building was erected in 1902, and later expanded in 1916. ''Note:'' This includes In 1903 Lukens had a new addition put on a steam-driven mill and that produced 136 inch wide steel plates. These were the largest plates being created in the United States. During 1917 the company adjusted the name again to Lukens Steel Company. Continuing through the year Lukens started to produce 204 inch steel plates making it the creator of the World's largest plate. Two years later the plates increased another two inches to 206, staying at the World's largest plate mill for over 40 years. In 1925 Abram Huston's son-in-law, Robert Wolcott, took his place as president of the mill. During
World War I World War I (28 July 1914 11 November 1918), often abbreviated as WWI, was one of the deadliest global conflicts in history. Belligerents included much of Europe, the Russian Empire, the United States, and the Ottoman Empire, with fightin ...
the company lost money but returned into good fortune in 1929 with a net income of $876,563 on sales nearing $20.4 million. Wolcott pushed the company through the tough times of
The Great Depression The Great Depression (19291939) was an economic shock that impacted most countries across the world. It was a period of economic depression that became evident after a major fall in stock prices in the United States. The economic contagio ...
. Production rates fell from 446,774 tons to 165,731 tons. Wolcott made a lot of cost reductions, intensive sales, and additional services such as partial fabrications before shipment in attempt to save the company. In 1930 the clad plate, which includes permanent bonding of two or more different metals that protects against rust, corrosion and abrasion, was brought to the production line. This gave Lukens the biggest inclusive line of clad steel in the business. 1937 led to an agreement with the Steel Workers Organization Committee. They accommodated the union members for a compromised agreement pertaining to wages, hours and benefits. By 1940 the company's debt was reduced and it was ready to prepare for the incoming demands of
World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposing ...
. The
U.S. Navy The United States Navy (USN) is the maritime service branch of the United States Armed Forces and one of the eight uniformed services of the United States. It is the largest and most powerful navy in the world, with the estimated tonnage o ...
built a finishing mill that Lukens leased and operated to meet the demands. They named a
Liberty ship Liberty ships were a class of cargo ship built in the United States during World War II under the Emergency Shipbuilding Program. Though British in concept, the design was adopted by the United States for its simple, low-cost construction. Ma ...
after Rebecca Lukens. When 1944 rolled around the employment reached a record high of 6,166. As the war came to a close the profits hit a new record of $2.8 million, net sales hit $61.5 million and production of steel was at 578,461 tons. In 1949 Wolcott was succeeded by Charles Lukens Huston Jr. making him the 5th generation to own the company. The greatest production of steel was in 1953 when the mill produced 763,461 tons. Net sales reached $130.5 million and income at $10.2 million in 1957. A year later a new steel producing facility was built surrounding a 100-ton electric furnace. The Coatesville mill now covered and of building space. Lukens supplied the steel beams used in construction of the
World Trade Center World Trade Centers are sites recognized by the World Trade Centers Association. World Trade Center may refer to: Buildings * List of World Trade Centers * World Trade Center (2001–present), a building complex that includes five skyscrapers, a ...
in New York. 1970 brought completed construction of a $12.8 million strand casting facility that produced steel slabs faster and reduced handling costs. By 1974 production of raw steel reach 958,000 tons and net sales reached $283.4 million. Huston Jr. retired that year ending the family dynasty since 1810. The following year the mill equipped four enormous electric furnaces that phased out the open-hearth furnaces. Economic problems hit the company hard in the late 70's. High energy costs, interest rates, and employment costs as well as competition from other metals and cheap imported material put a decrease on net income from 4.2% to 1.3% and plates sales dropped from 11% to 8%. W.R. Wilson became president and chief executive officer in 1980. In 1981, Lukens acquired General Steel Industries Inc., a producer of steel, crushing and conveying machinery, reflective highway signs, and protective coats for oil and gas pipelines, for $66 million. The company also bought 3.6 miles of railroad from Conrail called Brandywine Valley Railroad Co. The next year, Lukens would make two small purchases each year and one large every three years with non-steel productions. That same year steel was removed from the name to become Lukens Inc. From January through September 1982 in order to decrease costs the company reduced its work force by 22% and cut employee's pay 10%. Over the following year the mill lost $14 million putting it back into the red zone for the first time since 1938. Profit came back when Wilson cut costs by $50 million over four years. In order to do so he had to let go of half of the white-collar salaried staff. He was also able to straighten out a thirteen-year lawsuit by agreeing to pay 1,300 black workforce members $2.5 million in reimbursement and arranged to put a target to fill 18% of its hours and salary positions with black workers. 1988 earned a profit of $33.4 million on sales of $605.3 million and Lukens sold Canadian Lukens. The company won the largest single order in history. It consisted of a $74 million contract to supply carbon and military alloy plates over five years to be used in construction of two Nimitz-class nuclear aircraft carriers, at the time the largest warships in the world. By the next year the company hit a record profit of $41.5 million on sales of $644.9 million. Military orders turned the company around once again. The mill supplied alloy plate steel for projects like the Army's Abrams tank and the Navy's Aegis class cruisers,
ballistic missile A ballistic missile is a type of missile that uses projectile motion to deliver warheads on a target. These weapons are guided only during relatively brief periods—most of the flight is unpowered. Short-range ballistic missiles stay within the ...
s and submarines. Around October 1991 a walkout over financial and healthcare issues caused 1,200 plus workers at Lukens to unite at the Coatesville mill. The workers wanted to eliminate contracting out. Nonunion workers were hired to perform duties not directly tied to making steel along with salaried employees kept the mill running. About 85% of the normal production was kept going during the 105-day walkout that ended with the strikers not getting what they wanted. In 1992, Lukens purchased
Washington Steel Corporation Washington Steel Corporation was a highly successful post-war stainless steel production company, located in Washington, Pennsylvania. Washington Steel was the first U.S. company to use a Sendzimir Mill, invented by Polish inventor Tadeusz Sendzimi ...
for $273.7 million. Washington gave Lukens enough volume to rationalize building a new rolling mill in
Conshohocken Conshohocken ( ; Lenape: ''Kanshihàkink'') is a borough on the Schuylkill River in Montgomery County, Pennsylvania in suburban Philadelphia. Historically a large mill town and industrial and manufacturing center, after the decline of industry in ...
, Pa adaptable to stainless and carbon products. This system was called Steckel Mill Advanced Rolling Technology (SMART). The SMART technology was able to produce stainless coil plates up to 102 inches when the former limit was 60 inches. New chairmen and CEO R.W Van Sant sold Flex-O-Light producer of highway safety products, Ludlow-Saylor division, South Central Florida Express, Inc. in 1994 and Energy Coating Co to Dresser Industries Inc in 1995, which brought Lukens $70 million. Producing raw steel from an electric-arc furnace at the Coatesville plant produced 70% of their slabs. The Washington Stainless Group including the Washington Steel Corp's melting, continuous casting and hot-rolling facilities in Houston, Pa and the rolling and finishing facilities were in
Washington, Pa Washington is a city in and the county seat of Washington County, Pennsylvania. A part of the Greater Pittsburgh area in the southwestern part of the state, the city is home to Washington & Jefferson College and Pony League baseball. The popula ...
.
Bethlehem Steel The Bethlehem Steel Corporation was an American steelmaking company headquartered in Bethlehem, Pennsylvania. For most of the 20th century, it was one of the world's largest steel producing and shipbuilding companies. At the height of its succe ...
eventually bought Lukens in 1997 for $400 million in cash and stock.


21st century

In 2003, International Steel Group Inc (ISG) bought Bethlehem for $1.5 billion. The following year ISG was bought out by
Mittal Steel Mittal Steel Company N.V. was an Indian company and one of the world's largest steel producers by volume and turnover. After a merger in 2005, it is now part of ArcelorMittal. History Mittal Steel Company was formed as Ispat International in 19 ...
for $4.5 billion. In 2006 Mittal Steel and Arcelor merged to make a steel company three times the size of any other steel company for $33.6 billion. In early 2015, during the restoration of a home that once belonged to Rebecca Lukens, a trove of business correspondence from 1834 was found inside the walls. Historians have begun studying the letters and fragments to learn more about the company and the state of the commerce that was happening at the time. On September 28, 2020, Cleveland-Cliffs Inc. entered into a definitive agreement to acquire the United States steel mill interests of
ArcelorMittal ArcelorMittal S.A. is a Luxembourgian multinational steel manufacturing corporation headquartered in Luxembourg City. It was formed in 2006 from the takeover and merger of Arcelor by Indian-owned Mittal Steel. ArcelorMittal is the second la ...
, including Lukens.


Name changes

*The Federal Slitting Mill *Brandywine Iron Works and Nail Factory *A.Gibbons and Company *Gibbons and Huston *Charles Huston and Sons *Lukens Rolling Mill *Lukens Iron and Steel *Lukens Steel Company *Lukens Inc *Lukens Steel Inc *
Bethlehem Steel The Bethlehem Steel Corporation was an American steelmaking company headquartered in Bethlehem, Pennsylvania. For most of the 20th century, it was one of the world's largest steel producing and shipbuilding companies. At the height of its succe ...
*
International Steel Group International Steel Group (ISG) was an American steel company, headquartered in Cleveland, Ohio, which was established by the New York investment firm WL Ross & Co LLC to acquire the assets of bankrupt steel companies and combine them together in ...
*
Mittal Steel Mittal Steel Company N.V. was an Indian company and one of the world's largest steel producers by volume and turnover. After a merger in 2005, it is now part of ArcelorMittal. History Mittal Steel Company was formed as Ispat International in 19 ...
*
ArcelorMittal ArcelorMittal S.A. is a Luxembourgian multinational steel manufacturing corporation headquartered in Luxembourg City. It was formed in 2006 from the takeover and merger of Arcelor by Indian-owned Mittal Steel. ArcelorMittal is the second la ...
*
Cleveland-Cliffs Cleveland-Cliffs Inc., formerly Cliffs Natural Resources, is a Cleveland, Ohio-based company that specializes in the mining, beneficiation, and pelletizing of iron ore, as well as steelmaking, including stamping and tooling. It is the largest f ...


Industrial accomplishments

*Rolled plates for the Codorus (America's first iron-hulled vessel) * Boilerplates for riverboats in New Orleans *Boilerplates for Baldwin Locomotives for the
Pennsylvania Pennsylvania (; ( Pennsylvania Dutch: )), officially the Commonwealth of Pennsylvania, is a state spanning the Mid-Atlantic, Northeastern, Appalachian, and Great Lakes regions of the United States. It borders Delaware to its southeast, ...
and other Railroads *Fireboxes for railroad locomotives *Battleships armor and light tank armor for the Navy *Steel for the battleship USS ''New Jersey'' *Antiaircraft-gun bases and other fabricated steel parts for the Army *Keel plates for the aircraft carriers '' USS ''Saratoga'''' and USS ''Forrestal *Steel for the (first nuclear-powered submarine) *Plates for the hull on flight decks and plane launchers on the '' USS Enterprise'' (first nuclear-powered carrier) *
Eyebar In structural engineering and construction, an eyebar is a straight bar, usually of metal, with a hole ("eye") at each end for fixing to other components. Eyebars are used in structures such as bridges, in settings in which only tension, and ne ...
s to anchor the cables of bridges for the
Verrazano-Narrows Bridge The Verrazzano-Narrows Bridge ( ) is a suspension bridge connecting the New York City boroughs of Staten Island and Brooklyn. It spans the Narrows, a body of water linking the relatively enclosed New York Harbor with Lower New York Bay and t ...
in New York harbor *Plates for the
Throgs Neck Throggs Neck (also known as Throgs Neck) is a neighborhood and peninsula in the south-eastern portion of the borough of the Bronx in New York City. It is bounded by the East River and Long Island Sound to the south and east, Westchester Creek on ...
in New York City *Plates for the
Walt Whitman Bridge The Walt Whitman Bridge is a single-level suspension bridge spanning the Delaware River from Philadelphia in the west to Gloucester City in Camden County, New Jersey in the east. The bridge is named after the poet Walt Whitman, who resided i ...
in
Philadelphia Philadelphia, often called Philly, is the List of municipalities in Pennsylvania#Municipalities, largest city in the Commonwealth (U.S. state), Commonwealth of Pennsylvania, the List of United States cities by population, sixth-largest city i ...
*Fabricated materials for the ''
NS Savannah NS ''Savannah'' was the first nuclear-powered merchant ship. She was built in the late 1950s at a cost of $46.9 million (including a $28.3 million nuclear reactor and fuel core) and launched on July 21, 1959. She was funded by Uni ...
'' (first atomic-powered commercial ship) *Arched column supports for New York City's
World Trade Center World Trade Centers are sites recognized by the World Trade Centers Association. World Trade Center may refer to: Buildings * List of World Trade Centers * World Trade Center (2001–present), a building complex that includes five skyscrapers, a ...
(the only thing left standing after 9/11) *Steel for ice-crushing bow on the USS Manhattan (largest in the U.S. at its time) *Two Nimitz-class nuclear aircraft carriers (largest warships in the world) *Steel for the Coulee Dam *Steel for the St. Louis Arch *Steel for the
One World Trade Center One World Trade Center (also known as One World Trade, One WTC, and formerly Freedom Tower) is the main building of the rebuilt World Trade Center complex in Lower Manhattan, New York City. Designed by David Childs of Skidmore, Owings & Mer ...
.


References


External links


answers.comL.A Times 2003L.A Times 2006Charles Lukens Huston papers
at Hagley Museum and Library {{Authority control Steel companies of the United States ArcelorMittal Companies based in Chester County, Pennsylvania Ironworks and steel mills in Pennsylvania History of Chester County, Pennsylvania Companies with year of establishment missing