Crucible Industries Update

nsm said:
I wanted to share an update about Crucible Industries. They’ve issued a WARN Notice, indicating a possible shutdown in 90 days. We’ve taken proactive steps to maintain a strong supply chain and ensure uninterrupted service for the cutlery industry.

We have already placed orders with Erasteel, Carpenter Technologies, Ellwood Quality Steels and Universal Stainless who will provide the same high-quality products and the same exact chemistries. We have been processing their cutlery and/or aerospace alloys for several years and their quality has always been outstanding. Although there may be a brief adjustment period during this transition, our team is committed to minimizing any disruptions and maintaining the service and product quality you have come to expect from us.

It is also important to note that Crucible Industries is making efforts to remain in business during this process. We have steel on order with them and they are continuing to process everything they can.

Bob
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Thank you so much for an update. As a knife enthusiast, this concerns me. As a supporter of US based companies, this also concerns me. I really don't want to buy "XM309fsCrMo28" when foreign countries replicate Crucible formulas.
 
Larrin said:
www.syracuse.com

Last-minute bidder promises to preserve ‘significant number of jobs’ at Crucible steel in Geddes

Part of the steel mill has sold. But another company wants what is left.
www.syracuse.com www.syracuse.com

Erasteel won the auction for the CPM business, intellectual property, and inventory.
A brand new "limited liability" company bid for the facilities and property and are saying they want to continue running the business and maintain a "significant number" of the existing employees.
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That sounds like great news! Thanks for sharing.
 
Some good news for the some of the employees. Likely not good news for knife steel junkies as their fix is sure to become more expensive.

Thanks Larrin for the update.
 
Larrin said:
www.syracuse.com

Last-minute bidder promises to preserve ‘significant number of jobs’ at Crucible steel in Geddes

Part of the steel mill has sold. But another company wants what is left.
www.syracuse.com www.syracuse.com

Erasteel won the auction for the CPM business, intellectual property, and inventory.
A brand new "limited liability" company bid for the facilities and property and are saying they want to continue running the business and maintain a "significant number" of the existing employees.
Click to expand...
Would the new LLC have to then license the CPM IPs from Erasteel to have to keep producing CPM steels at the old Crucible location, or do they have other plans for the facility?
 
MarbReds said:
Would the new LLC have to then license the CPM IPs from Erasteel to have to keep producing CPM steels at the old Crucible location, or do they have other plans for the facility?
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I think the NY location will be making the bread and butter steels for industries other than the small knife market. Erasteel got all the IP and specialized equipment related to the CPM process.
 
SharpBits said:
I think the NY location will be making the bread and butter steels for industries other than the small knife market. Erasteel got all the IP and specialized equipment related to the CPM process.
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Makes sense. I can’t see how that wouldn’t mean no more US production of crucible steels, sadly.
 
There aren’t many remaining Crucible patents but if they wanted to use the trademark names they would need an agreement with Erasteel. Erasteel owns the CPM business but that doesn’t mean they would have to move any equipment. How those agreements could work is not 100% clear right now.
 
This brings back some painful memories of the GST Steel bankruptcy and subsequent Wire Rope bankruptcy after 9/11/2001. I hope things work out for the best for all those affected.
 
This sucks, for sure.

I heard about this elsewhere but it caused me to buy several knives in steels that I wanted but had held off because I have a pile of knives.

it’s gunna be interesting to see how this plays out.
 
I wonder if the tariffs on imported steel President Trump is implementing would have been enough to save Crucible Industries if they were put in place a year or 2 ago?

Sad to see a great company in trouble.
 
I listened to the transcript and ERA now owns the equipment, intellectual property, inventory, and raw materials associated with the PM business (Lot 1 assets). They did not buy any real estate and have an agreement with the landlord to remove all purchased items within 90 days of closing (Mid March). Lot 2 assets which are the melt shop and forge press were bought by a company out of Rochester NY and their intent is to run that part of the facility as a business. They must buy some of the real estate and negotiate with the union to close that deal but both have agreed to do that. No mention of where the PM equipment was going or if it was going to be used elsewhere or scrapped. Contact your local ERA representative for that information.
 
We wanted to give you an update on what’s happening with our CPM steel supply now that Crucible has stopped melting CPM alloys.

The short version: Erasteel bought the CPM trademarks and intellectual property from Crucible. Erasteel and Carpenter Technologies will be supplying us with the same grades we’ve been buying from Crucible — including MagnaCut, S30V, S35VN, S45VN.... The names may be different, but the quality will be the same or better. They also have proprietary grades that we will be offering too.

We’re expecting our first batch of MagnaCut from Erasteel this month, and another shipment from Carpenter next month. On top of that, we’ve already got several more tons ordered, so we’re in good shape to keep things moving.

That said, we’re going to analyze the first heats from both mills to make sure they’re up to the standards we (and all of you) expect. Once we’re confident in the quality, we’ll be placing larger orders to refill inventory. Lead times look pretty similar to what we’re used to from Crucible, so we don’t see this turning into a long-term supply issue.

One challenge we do have is tariffs, especially on material from Erasteel in Europe. We’re going to do what we can to minimize the cost impact, but we wanted to be upfront about that piece.

Lastly — and this is important — there are no domestic sources that can atomize the powder needed to make these PM steels. That step has been done overseas by both mills for several years, so that’s not new, but it’s part of why the supply chain will always involve some international logistics.

We’ll keep you posted as we start receiving and testing these first heats. Thanks for your support, and if you have any questions, we’re happy to chat.
 
This is why I don't understand why, they didn't keep Crucible's doors open.

They could get around tariffs by using Crucible, as their U.S. factory.
 
Mk-211 said:
This is why I don't understand why, they didn't keep Crucible's doors open.

They could get around tariffs by using Crucible, as their U.S. factory.
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some company called Lauter Metal Technologies LLC is buying the other equipment that erasteel didnt and maybe the location...but they aren't making knife steels so it will be used for other steel work.....

www.syracuse.com

Town welcomes buyer of Crucible steel plant to Geddes

"Very happy to hear there's another player."
www.syracuse.com www.syracuse.com
 
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