Alton Steel, Inc., a manufacturer of special bar quality steel in Alton, Illinois, has announced that it will cease operations this week after over two decades in business, affecting about 253 employees, along with contractors and local partners.

In its statement, the company said it had faced “insurmountable challenges”, including aging infrastructure, intense market competition, and consolidation in the steel industry, all of which made continued operations “no longer economically sustainable.” 

CEO Chris Ervin explained that despite efforts to modernize, the company could not compete with larger producers equipped with newer facilities and stronger financial resources.

Local officials, including state representatives Erica Harris and Amy Elik, expressed shock at the decision and committed to coordinating support for displaced workers. The company said employees’ 401(k) retirement accounts would remain intact and that it plans to collaborate with regional employers to help affected workers find new job opportunities.