Braeburn Alloy Steel sold; United Steelworkers charges unfair labor practices

G.O. Carlson Inc. of Oil City has bought Braeburn Alloy Steel in Lower Burrell.

Commonly referred to as Braeburn Steel, Braeburn processes metal alloys, including titanium, refractory metals, high-end nickel alloys, steel alloys, stainless steel, tool steel and carbon steel.

It’s 125 years old and employs about 41 workers.

The sale was announced Thursday by SC&H Capital, an investment banker to CCX Inc. CCX acquired Braeburn Steel in 1944 and retained its name.

Details of the sale were not immediately available.

The companies and SC&H Capital said the transaction would allow Braeburn Alloy Steel to continue operations.

But the new owners refuse to recognize the United Steelworkers union, USW spokesman Tony Montana said Friday.

The United Steelworkers union is “aggressively pursuing unfair labor practice charges against Braeburn and G.O. Carlson over the company’s refusal to recognize the labor union,” Montana said.

The labor contract for about 35 Braeburn employees represented by USW expired June 30.

The unfair labor practices charges are pending before the National Labor Relations Board in Pittsburgh, Montana said.

CCX Braeburn Alloy Steel filed a voluntary petition for Chapter 11 bankruptcy earlier this year to reorganize and continue operations after the steel company was hit with reduced sales during the covid-19 pandemic and increased expenses. A possible sale of the steel company to G.O. Carlson was announced in the bankruptcy proceedings.

SC&H Capital praised the sale in a news release as an “excellent fit” for G.O. Carlson, a world leader in high-performance corrosion and heat-resistant materials.

Matt LoCascio, principal at SC&H Capital, said: “We are thrilled that a company with as much history as Braeburn will continue to serve its clients and vendors as a result of this sale.”

When the proposed sale was announced several months ago, Tracy Rudolph, president and chief operating officer of G.O. Carlson, said in a statement that his company looked forward to continued employment for the “skilled workers at Braeburn and (serving) its clients and vendors with the same level of satisfaction it has for decades.”

Calls to G.O. Carlson and Braeburn were not immediately returned.

In April, Braeburn’s general manager, Felix Zaffina, said the steel company’s owners wanted to sell for some time.

“We hope that this ownership change will facilitate our growth potential within the metal forging industry and ensure rewarding career opportunities to our workforce in the future,” he said at the time.

Located along the Allegheny River in Lower Burrell’s Braeburn section, Braeburn’s multibuilding plant totals 220,000 square feet on about 9 acres of the 43 acres owned by the company.