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The
Geneva Steel Plant near Orem was the largest and most
significant of several defense-related industries developed
in Utah during the World War II period. The $200 million
plant was financed by the federal government to insure
that the nation's steel industry would be able to meet
the increased demand for steel by both military and industrial
users. The actual construction and operation of the plant
was turned over to Columbia Steel Company and the U.S.
Steel Corporation. Approximately 10,000 workers were involved
in the construction project, which extended from November
1941 to December 1944. Shortages of construction workers,
equipment, and materials delayed the completion of the
plant and made it more costly than planned.
The
decision to build the plant at this location was based
on several factors. The necessary raw materials were
all within a reasonable distance--coal deposits in Carbon
County, iron ore from Iron County, limestone and dolomite
near Payson, and water from Deer Creek Reservoir and on-site
artesian wells. Other advantages were the proximity of
the site to major railroad lines and the availability
of an educated and stable local work force. The plant's
inland location, though far from major markets, was selected
as a precaution against steel shortages in the West in
case of a Pacific coast invasion or closure of the Panama
Canal. This became an issue of increasing concern after
the Japanese attacked Pearl Harbor in December 1941.
The
plant opened in December 1944 but operated for only two
years as a U.S. government facility. During that time
its primary products were plate steel and structural shapes
for the West Coast wartime shipbuilding industry. With
the end of the war in August 1945, production at the plant
was greatly reduced. The government began soliciting buy-out
offers from steel manufacturers, and in June 1946 accepted
a $47.5 million bid from U.S. Steel, with the stipulation
that the company invest another $18.6 million in converting
the plant to peacetime operations. The actual value of
the state-of-the-art plant was estimated at more than
$144 million.
Since
its construction, Geneva has had a significant impact
on the local economy of Utah County. It has provided thousands
of well-paying jobs and attracted a number of ancillary
industries, such as fabricating plants. After more than
forty years of operation, the plant was shut down in early
1987 due to a combination of factors: increased foreign
competition, higher labor costs, and the corporate policies
of USX (formerly U.S. Steel). It started up again later
that same year under new ownership--Basic Manufacturing
and Technology of Utah, Inc.
Today,
Geneva faces the challenges of many "smokestack" industries
competing in a worldwide economy. By lowering production
and labor costs, adopting new technologies, and implementing
new marketing and management strategies the plant is working
to retain its position as a profitable and important industry
in the state.
Roger
Roper
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