Just a few hours after Talgo Inc. announced it will forego locating its new high-speed rail car assembly plant at Super Steel Products Inc.’s factory in Milwaukee, Super Steel filed for receivership.
Talgo, a Spanish company, instead decided to build its new plant at the former Tower Automotive site in Milwaukee.
Super Steel had been one of six finalists to be the home of Talgo’s new plant.
Did Talgo’s decision to go to the Tower Automotive site instead seal Super Steel’s financial fate?
No, according to Super Steel spokesman Evan Zeppos.
Super Steel’s decision to file for receivership was not related to Talgo’s announcement just hours earlier that it had selected the Tower Automotive site, Zeppos said.
“One contract would not have reversed the economic impact we’ve been facing at Super Steel,” Zeppos said. “However, Super Steel would have done an excellent job with that contract. We’re still in a position to be a good subcontractor on that project. We have received some additional work and contracts recently and we have a backlog now. But those aren’t enough to overcome the stress we’re facing, so (the filing) is really not related (to Talgo).”
Zeppos said Super Steel will survive the Chapter 128 receivership filing.
“Super Steel has experienced a difficult time related to the economic conditions,” Zeppos said. “In recent weeks, it became clear that reorganizing under Chapter 128 was the best option. I think this is a great company with a great future – there will be at least one other buyer who will look to buy the company as a going concern.”
– BizTimes Milwaukee
