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The "dumping" of cheap foreign steel has been a major factor - although not the only one, by any means - in the demise of Ohio Valley steel producers. The Clinton Administration absolutely refused to listen to the pleas of steel companies (so much for all that union support). Of course, cheap steel may hurt U.S. steelmakers, but it benefits U.S. steel consumers. The Bush Administration imposed some tariffs which provided some relief for Weirton, USX, Wheeling-Pitt, et al., but it may have been too little, too late.

Here's the Reuters report:

NEW YORK, May 19 (Reuters) - Weirton Steel Corp. on Monday said it has filed for bankruptcy protection, the latest U.S. steelmaker to succumb to weak demand and intense overseas competition.

The Weirton, West Virginia-based steelmaker filed a voluntary petition for reorganization under Chapter 11 bankruptcy rules in federal court in Wheeling, West Virginia. Normal operations will continue, the company said, including all production, sales and shipments.

The company has secured $225 million of debtor-in- possession (DIP) financing to fund its operations during the bankruptcy court process. DIP financing was arranged by FleetBoston, Weirton's existing bank lenders and Manchester Securities.

Weirton said it needs to further slash costs even after a restructuring effort last year that cut jobs, trimmed overhead expenses and addressed long-term debts. The company says it faces weak market conditions and obligations to retired employees such as pensions, health care and life insurance.

By declaring bankruptcy, Weirton says it will be better able to seek reductions to "legacy" employee costs and other "burdensome" contracts. "Reorganization will stabilize our financial outlook, achieve vital cost savings and help us become a stronger, more competitive company," Weirton Steel President and Chief Executive John Walker said in the statement.

The company earlier this year noted it had chopped $38 million of expenses through new agreements with managers. It also pursued $10 million of concessions from retirees and $34 million in give-backs from active unionized employees.

Weirton said it will retain control of its businesses and assets during the reorganization. The company observed that 36 U.S. steelmakers have filed for bankruptcy in the past five years. Weirton shares plunged 8 cents, or 65 percent, to 4.5 cents a share in Nasdaq Bulletin Board trading.