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October 18, 2008

Specter visits Ellwood Quality Steels

By John K. Manna

Sen. Arlen Specter got a first-hand look yesterday of a recent expansion project at Ellwood Quality Steels.

�It was enormously impressive,� he said at a press conference following the tour, which included a look at a 5,000-ton open-die forging press that can handle 40 tons of steel at the Moravia Street plant.

The expansion, which began in 2007, cost about $60 million, and the company is planning another $75 million investment.

�We�re quite proud of the people here and the equipment,� said company president Robert E. Rumcik.

He said there is no steel specifications that the company can�t accommodate.

In response to a question from Specter about competition from China, Rumcik answered, �I don�t think they can consistently make our quality.�

He added that on a level playing field, the company can compete with anyone.

Specter talked of steel�s importance, calling it �the backbone of the economy� and �very important for national defense.�

Ellwood Quality Steels, which has 192 employees, is one of nine companies in Ellwood Group Inc. The corporation�s chairman, Robert Barensfeld, commented that Specter had been a big help in the past, securing federal money for the firm.

�What you see is producing good jobs and reinvesting in Pennsylvania,� he told Specter.

Company employees earn an average of $82,000, he said.

Barensfeld talked about the proposed $75 million project for a new forge facility � to be completed in 2011 � that will have a 7,000-ton press. It will allow the company to make large crankshafts. The firm has a commitment from Caterpillar, he said, adding that the crankshafts will be used in large ships and container vessels.

�I think there are only four other places that has that process. We want to be the forge shop of choice. We want to deliver the best product at the best price and deliver on time.�

The company also provides steel for wind generation and the oil industry.

The forging press that Specter saw yesterday is like a �large-scale blacksmith operation,� according to Marc J. Panaia, operations manager.

The press shapes the steel, changes its �microstructure� and creates �a high quality steel,� he said.

Specter remarked about the machine that turns the steel around on the press. When the senator was told it is called a manipulator, Specter joked, �I thought we only had those in Washington.�

Regarding Washington, Specter said of the financial rescue plan approved by Congress two weeks ago, �Right now, the credit freeze hasn�t thawed.

�Nobody knows when or how it�s (the bailout) going to work.�

He said he doesn�t want to see the banking system nationalized.

Specter said he believes Congress should return on Nov. 5, the day after the election, �to figure out how to handle this economic crisis.�

There is talk about an economic stimulus package, and he would prefer one that puts people to work on highways and bridges, he said.

�We got to sit down and talk among ourselves ... how much we�re going to spend.�

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