CHICAGO E&H Tubing Inc. plans to make steel tubing in Brownstown, Ind., using the assets of Indiana Steel & Tube Inc., which it acquired in a bankruptcy auction earlier this year.
E&H Tubing shares common ownership with Charter Steel Trading Co. Inc., according to Indiana Economic Development Corp. (IEDC) and the company.
Charter Steel Trading president Gary Birnbaum last month refused to confirm the Chicago-based companys acquisition of bankrupt Indiana Steel & Tube (amm.com, Nov. 12).
E&H Tubing shared "common ownership" with Charter Steel Trading, the company and IEDC said Wednesday.
"We believe that having the ownership of Indiana Steel & Tube along with Charter Steel Trading Co. creates a strong steel-based alliance within the steel industry," Birnbaum said in a statement, noting that his company had decided to keep the assets of Indiana Steel & Tube in the state because of its "business-friendly climate."
E&H Tubing is leasing the two former Indiana Steel & Tube facilities, one 100,000 square feet and the other 68,000 square feet, on a combined 20-acre parcel of land, the IECD and the company said. The company, which could create 56 new jobs by 2015, has already hired machine and forklift operators, as well as packaging staff, it said. A second shift could be added in the coming months.
Charter Steel Trading was among Indiana Steel & Tubes top unsecured creditors when the company filed for bankruptcy protection (amm.com, July 11). In late October, a bankruptcy court judge in Indiana approved E&H Tubings purchase of the bankrupt company for nearly $5.7 million (amm.com, Nov. 1).