Sharon Steel Corporation - The Depression

The Depression

So that the Sharon Steel Hoop Company might improve its practice and be more competitive in the field of Hot rolled bands, a new continuous two-high hot strip was built during 1928 and, at the same time, construction was started on a new cold roll plant in the Sharon Works. Being aware of the need to diversify the products of the company, management started the development and initial production of stainless steel late in 1930. The stock market crash in 1929, combined with the sharp reduction in sales and operations, and the heavy investment previously made in new equipment, left the company to face the years of depression seriously short of capital to carry on the business. About this time, Mr. Ker retired as president, and in December, 1930, Henry A. Roemer was elected as the third president of the Sharon Steel Hoop Company. Mr. Roemer accepted his position as president of the Sharon Steel Hoop Company with an impressive background in steel production. He knew the work associated with steel production from the workman's point of view, and he knew leadership from the administration's point of view, having served capably as superintendent of several steel companies.

In the early years of the depression, things were difficult for the new president of the company. Orders were hard to secure, the operating rate was low, money was scarce, the bond interest had to be paid in scrip, and the equipment needed to be modernized. The new continuous hot mill built in 1928 needed to be remodeled, widened, and converted into a four-high strip mill, also new cold rolling facilities and equipment for stainless steel production were needed. Numerous other problems showed up which the management had to face.

However, Mr. Roemer and his organization tackled the problem of rehabilitation and rejuvenation, with the result that the Sharon Steel Hoop Company under Mr. Roemer's leadership not only survived the depression, but had been built up and expanded tremendously.

The first no-direct-contact continuous process for the electrolytic pickling of stainless steel and degreasing and cleaning cold roll steel prior to coating was placed in operation at the Sharon Steel Hoop Corporation in 1933.

Aided by improvement in business conditions, the Sharon Steel continued to expand its sales volume and to make further improvements in production facilities during the thirties. Equipment for the production of terne and tin coating was added, a new product under the trade name of “Galvanite” was produced, and other specialties were added to the company's line of products. New electric furnaces were installed at the Lowellville Works to make stainless steel ingots to be converted into stainless steel stip on the Sharon finishing mills.