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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.
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