Empire Steel Falls to Slow Market, Poor Financials.

Atchison Casting Corp. (ACC), Atchison, Kansas, plans to shut down its Empire Steel Castings facility in Reading, Pennsylvania by November. It is one of two steel foundries belonging to ACC's Pennsylvania Foundry Group.

Empire Steel produces castings up to 7000 lb. It serves various industries including military/defense, construction, mining and agriculture.

"As a result of several years of slow markets and poor financial results, we will close Empire Steel within 60 days," ACC Chief Operating Officer of North America Tom Armstrong said. "Many of the customers will be encouraged to transfer their business to other Atchison locations. This will increase the utilization rates of these foundries and should result in improved profitability."

Empire Steel reported a net loss after taxes of $2.6 million on sales of $10.1 million at the end of ACC's fiscal year in June.

Empire employs 138 workers. How they will be affected has not been announced.

The write-off of the remaining fixed assets is expected to cost ACC approximately $1.8 million before taxes with anticipated proceeds from the sale of equipment.

ACC produces iron, steel and nonferrous castings for a wide variety of equipment, capital goods and consumer markets.