21 replies to this topic

[Brinybay]

Pressed Steel article in The Business Journal

Receiver seeking buyer for Pressed Steel Tank

Rich Rovito, The Business Journal

A court-appointed receiver who has taken control of Pressed Steel Tank Co. is seeking a buyer for the company that will operate it as a going concern.

"We hope to get the company sold as soon as possible," said Michael Polsky, the receiver.

Financially troubled Pressed Steel, which operates a 266,000-square-foot plant at 1445 S. 66th St., West Allis, had planned to relocate its operations to the Tower Automotive Inc. complex on Milwaukee's north side, clearing the way for the city of West Allis to redevelop the property as part of the massive Six Points/Farmer's Market commercial, residential and retail project.

The city of West Allis purchased the Pressed Steel property in 2004 for $500,000 and had been working with the company to secure financing for the move to the Tower Automotive site, 3522 N. 35th St.

West Allis officials weren't immediately available for comment.

Relocating Pressed Steel's operations aren't "part of the plan at this time," Polsky said.

The value of Pressed Steel's assets is less than the company's liabilities, according to documents filed Feb. 8 in Milwaukee County Circuit Court.

The receiver believes the going concern value of Pressed Steel's assets is more than the liquidation value of the assets, states a document filed by Polsky. The going concern and liquidation values have yet to be determined, the document states.

Pressed Steel owes $145,000 to Prairie Business Credit Inc. and about $1.9 million to other creditors, according to the court filings.

Founded in 1902, Pressed Steel manufactures tanks for pressurized gases, such as scuba diving tanks and oxygen bottles for aircraft.

In August, the company filed a notice with the state Department of Workforce Development indicating it could be forced to lay off 37 employees because it had yet to secure all of the financing needed for its move from West Allis to Tower Automotive's manufacturing complex.

Pressed Steel Tank has said the move will cost about $5.3 million. The company had previously indicated that it could add 50 new jobs as a result of the relocation.

Relocating Pressed Steel's operations has been an ordeal for the city of West Allis, with the process getting drawn out over several years due to legal wrangling. Pressed Steel had considered relocating to the Tower site in 2000, but a dispute over financial assistance from the city of West Allis put an end to that plan.

In December 2002, West Allis city building inspectors issued an order to raze Pressed Steel's 100-year-old factory, citing 135 code violations. Pressed Steel went to court to block demolition and the city later purchased the property.

[ScubaDadMiami]

Hopefully, this will make my double steel 120s an even more valuable asset when I go to sell them. Great tanks.

[Diverbrian]

Hopefully, this will make my double steel 120s an even more valuable asset when I go to sell them. Great tanks.

If the exemption is still good on the rated pressure, it should. Really, all the PST HP tanks involve is someone taking LP tanks and going to a little bit of extra work to get them rated for the HP that the tech divers fill them to anyways. (At least that is my understanding.) In essence, my HP 130's are really nothing more than LP 90's that were rated by DOT to take 3442 psi instead of having divers buy the LP version and filling them to 3500 psi anyways.

If that exemption expires with the company, a bunch of us have very expensive paperweights when the next hydro comes up.

[drbill]

If that exemption expires with the company, a bunch of us have very expensive paperweights when the next hydro comes up.

I've heard that even an individual can request extension of the exemption. Does anyone know what the truth is on that issue?

Fortunately my current PST HP120 has 3 1/2 years to go on its current hydro.

Sad to hear them go under, but there were hints of this over the last two years so it isn't a big surprise, just a disappointment.

[ScubaDadMiami]

By the way, it is not that the company is closing. It is just being operated by the receiver, and they looking for a purchaser. So, it is not like all things are coming to a halt at this point.

[nydiver]

How did I know that if one looked there would be the following info out there?

January 10, 2003
Pressed Steel Tank sues city of West Allis
Pressed Steel Tank Co. is suing the city of West Allis and has obtained a temporary restraining order in Milwaukee County Circuit Court to block the demolition of its 266,000-square-foot plant at 1445 S. 66th St.

The West Allis-based manufacturer is seeking a permanent injunction to prevent the city from razing its plant that produces tanks for pressurized gases, including scuba diving tanks.

The city of West Allis served the company with an order Dec. 15 giving Pressed Steel 30 days to raze the 100-year-old plant and return the premises to a "dust-free and erosion-free condition." Some city officials have deemed the property an eyesore and claim it's hindering redevelopment efforts on the city's east side.

In a complaint filed before Judge Michael Sullivan in Milwaukee County Circuit Court on Friday, Pressed Steel claims the raze order was issued only after the city decided that acquiring the property through eminent domain was "economically unfeasible." The company also accuses the city of attempting to take ownership of the property without paying fair compensation or providing for the relocation of Pressed Steel.

Pressed Steel also argues in the complaint that the property isn't dangerous, unsanitary or unfit for human habitation, as the city has claimed. Pressed Steel claims that the factory can be repaired.

City officials have estimated that it would cost $1 million to $2 million to bring the building up to city building code standards.

The complaint also accuses West Allis Mayor Jeannette Bell, building inspector Ted Atkinson and development director John Stibal of abusing their authority and acting together to "unlawfully deprive" Pressed Steel of constitutional rights as well as conspiring to take the property without providing just compensation.

Pressed Steel also is seeking unspecified punitive damages



This was 3 years ago, last year they were forced to lay off 37 jobs instead of being moved and adding 50 extra jobs, Why? The city has recinded its relocation aid and blocked state and federal aid for the move, thereby forcing the company into receivership and ending all its legal battles over the fact that the local government was unlawful in their actions. Its all one big political move for the local government, that just happens to ruin 50 possible future jobs, and over 100 actual jobs. Pressed Steel Tank is headed for materials auction, noone is going to absorb 2 million in debt and then pay 5.5 million to move the facilities. Instead the machinery will be auctioned and the name Pressed Steel Tank will be sold off to a foreign tank manufacturer. I can see it now, Why? Cause our local politicans do it every single day, we just aren't effected or concerned because it has no direct effect on our personal lives.

[scubafanatic]

I just received this e-mail from Dive Rite Express:

Dive Rite Express
What's up with steel cylinders?
Greetings!

If you have received the Dive Rite Express newsletters before, you know that they usually contain special limited time and quantity deals. Well, we have a really INCREDIBLE deal in this newsletter.

Pressed Steel vs Worthington

For 2006, Dive Rite Express is introducing Worthington brand SCUBA cylinders to replace Pressed Steel Tank brand. Dive Rite Express has been one of PST's largest SCUBA cylinder customers for the last few years and we loyally stuck with them through some very tedious product shortages and shipping delays. PST made a quality product and for years it was the only SCUBA cylinder available with the hot-dipped galvanized coating preferred by our customers. Unfortunately, PST has apparently entered receivership and future availability of PST SCUBA cylinders is uncertain. We have already had some questions regarding the status of the DOT E-9791 exemption on the 3442 psi E-Series cylinders. Should that exemption be allowed to expire, filling and hydro testing of the 3442 psi E- series cylinders would technically no longer be allowed by DOT regulations. Don't panic, because PST recently got their exemption renewed through August of 2007. We expect by that time either PST will be purchased as a going concern and the exemption will continue to be renewed, or the DOT will move forward with issuing a new higher pressure general specification (similar to the low-pressure 3AA specification) which would grandfather the PST E- series cylinders.

Worthington is now offering a hot-dipped galvanized 3442 psi cylinder they call the X-series. Our large initial purchase for inventory is on it's way from Worthington and we expect it to arrive around March 1st. To kick things off with a "bang", we negotiated a market leading introductory SALE price until March 1st or we sell out of our first shipment. To make the deal even better we are including our usual FREE SHIPPING via UPS Ground to physical addresses within the continental United States. PLUS, Dive Rite Express ships your cylinder with the valve installed, no re-inspection fee is necessary before filling.

X7-100 = $264.95 FREE Shipping
X7-120 = $294.95 FREE Shipping
X8-119 = $269.95 FREE ShippingI
X8-130 = $289.95 FREE Shipping

To help decide what size might be best for you, we have a factual but easy-to-read article titled How to Select a SCUBA Tank. Divers are asking a lot of questions trying to compare the new Worthington Cylinder X-series brand scuba cylinders with the more familiar Pressed Steel Tank Company E-series brand scuba cylinders. At Dive Rite Express we have been using and evaluating both and our opinion is the two brands are equivalent. Both cylinders are of similar product quality, use the exact same valve and boot, and in actual diving the dimensions and buoyancy characteristics are indistinguishable from each other. We observe that new PST cylinders had a bit more polished brighter cosmetic appearance than the Worthington cylinders, but after a few dives the appearance of both brands of cylinder is pretty much the same.

Click Here

to learn more about Worthington SCUBA Cylinders and to Order

At the introductory prices we have negotiated for our initial shipment, it's possible we could sell out of that shipment in a very short time. So we are sending this note to our customers to give them an early opportunity to take advantage of the sale. Order now to insure your position, as always we won't charge your card until your order is ready to ship.

Sincerely,
Mark Derrick

Manager
Dive Rite Express
email: newsletter@diveriteexpress.com
phone: 954-786-0661
web: http://www.diveriteexpress.com

Dive Rite Express | 2045 North Dixie Highway | Pompano Beach | FL | 33060

[ScubaGypsy]

This is interesting as I just received the following email from Dive-Rite:

Dive Rite Express
What's up with steel cylinders?
Greetings!

If you have received the Dive Rite Express newsletters before, you know that they usually contain special limited time and quantity deals. Well, we have a really INCREDIBLE deal in this newsletter.

Pressed Steel vs Worthington
For 2006, Dive Rite Express is introducing Worthington brand SCUBA cylinders to replace Pressed Steel Tank brand. Dive Rite Express has been one of PST's largest SCUBA cylinder customers for the last few years and we loyally stuck with them through some very tedious product shortages and shipping delays. PST made a quality product and for years it was the only SCUBA cylinder available with the hot-dipped galvanized coating preferred by our customers. Unfortunately, PST has apparently entered receivership and future availability of PST SCUBA cylinders is uncertain. We have already had some questions regarding the status of the DOT E-9791 exemption on the 3442 psi E-Series cylinders. Should that exemption be allowed to expire, filling and hydro testing of the 3442 psi E- series cylinders would technically no longer be allowed by DOT regulations. Don't panic, because PST recently got their exemption renewed through August of 2007. We expect by that time either PST will be purchased as a going concern and the exemption will continue to be renewed, or the DOT will move forward with issuing a new higher pressure general specification (similar to the low-pressure 3AA specification) which would grandfather the PST E- series cylinders.

Worthington is now offering a hot-dipped galvanized 3442 psi cylinder they call the X-series. Our large initial purchase for inventory is on it's way from Worthington and we expect it to arrive around March 1st. To kick things off with a "bang", we negotiated a market leading introductory SALE price until March 1st or we sell out of our first shipment. To make the deal even better we are including our usual FREE SHIPPING via UPS Ground to physical addresses within the continental United States. PLUS, Dive Rite Express ships your cylinder with the valve installed, no re-inspection fee is necessary before filling.

* X7-100 = $264.95 FREE Shipping
* X7-120 = $294.95 FREE Shipping
* X8-119 = $269.95 FREE Shipping
* X8-130 = $289.95 FREE Shipping

To help decide what size might be best for you, we have a factual but easy-to-read article titled How to Select a SCUBA Tank. Divers are asking a lot of questions trying to compare the new Worthington Cylinder X-series brand scuba cylinders with the more familiar Pressed Steel Tank Company E-series brand scuba cylinders. At Dive Rite Express we have been using and evaluating both and our opinion is the two brands are equivalent. Both cylinders are of similar product quality, use the exact same valve and boot, and in actual diving the dimensions and buoyancy characteristics are indistinguishable from each other. We observe that new PST cylinders had a bit more polished brighter cosmetic appearance than the Worthington cylinders, but after a few dives the appearance of both brands of cylinder is pretty much the same.

At the introductory prices we have negotiated for our initial shipment, it's possible we could sell out of that shipment in a very short time. So we are sending this note to our customers to give them an early opportunity to take advantage of the sale. Order now to insure your position, as always we won't charge your card until your order is ready to ship.

Sincerely,
Mark Derrick

Manager
Dive Rite Express
email: newsletter@diveriteexpress.com
phone: 954-786-0661
web: http://www.diveriteexpress.com

[ScubaGypsy]

I guess we're on the same email listings!

[intotheblue]

This is interesting as I just received the following email from Dive-Rite:

Dive Rite Express
What's up with steel cylinders?
Greetings!

If you have received the Dive Rite Express newsletters before, you know that they usually contain special limited time and quantity deals. Well, we have a really INCREDIBLE deal in this newsletter.

Pressed Steel vs Worthington
For 2006, Dive Rite Express is introducing Worthington brand SCUBA cylinders to replace Pressed Steel Tank brand. Dive Rite Express has been one of PST's largest SCUBA cylinder customers for the last few years and we loyally stuck with them through some very tedious product shortages and shipping delays. PST made a quality product and for years it was the only SCUBA cylinder available with the hot-dipped galvanized coating preferred by our customers. Unfortunately, PST has apparently entered receivership and future availability of PST SCUBA cylinders is uncertain. We have already had some questions regarding the status of the DOT E-9791 exemption on the 3442 psi E-Series cylinders. Should that exemption be allowed to expire, filling and hydro testing of the 3442 psi E- series cylinders would technically no longer be allowed by DOT regulations. Don't panic, because PST recently got their exemption renewed through August of 2007. We expect by that time either PST will be purchased as a going concern and the exemption will continue to be renewed, or the DOT will move forward with issuing a new higher pressure general specification (similar to the low-pressure 3AA specification) which would grandfather the PST E- series cylinders.

Worthington is now offering a hot-dipped galvanized 3442 psi cylinder they call the X-series. Our large initial purchase for inventory is on it's way from Worthington and we expect it to arrive around March 1st. To kick things off with a "bang", we negotiated a market leading introductory SALE price until March 1st or we sell out of our first shipment. To make the deal even better we are including our usual FREE SHIPPING via UPS Ground to physical addresses within the continental United States. PLUS, Dive Rite Express ships your cylinder with the valve installed, no re-inspection fee is necessary before filling.

* X7-100 = $264.95 FREE Shipping
* X7-120 = $294.95 FREE Shipping
* X8-119 = $269.95 FREE Shipping
* X8-130 = $289.95 FREE Shipping

To help decide what size might be best for you, we have a factual but easy-to-read article titled How to Select a SCUBA Tank. Divers are asking a lot of questions trying to compare the new Worthington Cylinder X-series brand scuba cylinders with the more familiar Pressed Steel Tank Company E-series brand scuba cylinders. At Dive Rite Express we have been using and evaluating both and our opinion is the two brands are equivalent. Both cylinders are of similar product quality, use the exact same valve and boot, and in actual diving the dimensions and buoyancy characteristics are indistinguishable from each other. We observe that new PST cylinders had a bit more polished brighter cosmetic appearance than the Worthington cylinders, but after a few dives the appearance of both brands of cylinder is pretty much the same.

At the introductory prices we have negotiated for our initial shipment, it's possible we could sell out of that shipment in a very short time. So we are sending this note to our customers to give them an early opportunity to take advantage of the sale. Order now to insure your position, as always we won't charge your card until your order is ready to ship.

Sincerely,
Mark Derrick

Manager
Dive Rite Express
email: newsletter@diveriteexpress.com
phone: 954-786-0661
web: http://www.diveriteexpress.com

Good poop! Thanks for the post.

[drbill]

But we're not Worthington, we're not Worthington! Right Garth?

[6Gill]

If that exemption expires with the company, a bunch of us have very expensive paperweights when the next hydro comes up.

I've heard that even an individual can request extension of the exemption. Does anyone know what the truth is on that issue?

Fortunately my current PST HP120 has 3 1/2 years to go on its current hydro.

Sad to hear them go under, but there were hints of this over the last two years so it isn't a big surprise, just a disappointment.

Well if the hydo shops are similar to here I'll bet that if you send them in they'll come back with a hydro stamp.Most shops see a current hydro/vis and they'll fill it.
Now should anyone feel that they need to get rid of theses 'worthless' orphan tanks I'll take 'em off your hands and wont even charge you a disposal fee

Eric

[intotheblue]

If that exemption expires with the company, a bunch of us have very expensive paperweights when the next hydro comes up.

I've heard that even an individual can request extension of the exemption. Does anyone know what the truth is on that issue?

Fortunately my current PST HP120 has 3 1/2 years to go on its current hydro.

Sad to hear them go under, but there were hints of this over the last two years so it isn't a big surprise, just a disappointment.

Well if the hydo shops are similar to here I'll bet that if you send them in they'll come back with a hydro stamp.Most shops see a current hydro/vis and they'll fill it.
Now should anyone feel that they need to get rid of theses 'worthless' orphan tanks I'll take 'em off your hands and wont even charge you a disposal fee

Eric

Now there you go! Find a need, then fill it! I'll help if needed!

[CaptSaaz]

First, thanks for the info on PST and the sale at Dive Rite Express. I've been sort of looking at steel tanks for a while now and would like to have two for the upcoming dive season here in the northeast. I'm looking at the Worthington HP 100's. My question is, with a HP cylinder, 3442 psi, can you use a yoke valve with them or can they only be used with a DIN valve due to the higher pressure?

[scubafanatic]

First, thanks for the info on PST and the sale at Dive Rite Express. I've been sort of looking at steel tanks for a while now and would like to have two for the upcoming dive season here in the northeast. I'm looking at the Worthington HP 100's. My question is, with a HP cylinder, 3442 psi, can you use a yoke valve with them or can they only be used with a DIN valve due to the higher pressure?

...well, for starters, they come standard with dual-convertible Yoke-DIN tank valves, you are free to use either a DIN or Yoke 1st stage as you wish, then ask yourself a few questions:

--will you be in an overhead environment, if 'YES' definitely use a DIN 1st-stage.

-- what fill pressures can you achieve locally ?..... all the liveaboards I've done only do 3000 or so PSI fills, DIN isn't really needed in those conditions, unless you encounter an overhead environment.

-- if you fill tanks at the shop, then load the boat, you can likely obtain good 3500 psi or more fills, I'd likely opt for a DIN 1st stage.

-- what is the pressure rating of your Yoke attachment of your 1st stage ? ...the more modern your reg, the more likely it is to be rated for higher pressures...personally, if open-water recreationally diving, I'm fine using a recent modern Yoke 1st-stage up to about 3500 psi, just make sure the tank-to-reg O-ring is good, pressurize it and check for any leaks....remember the tank pressure will soon drop below 3500 psi anyway as the dive progresses. If you're really paranoid and worry about overloading your Yoke attachment with a HP fill, only pressurize your reg just before diving, to reduce the time-under-stress factor.

I've got a few DIN regs with some pretty slick SCUBAPRO DIN-to-Yoke adapters attached....... in 2 seconds I can switch one of these regs from DIN to Yoke or vice-versa, I'd recommend you go that route to achieve the flexibility to deal with any tank you encounter.

Karl

Edited by scubafanatic, 19 February 2006 - 08:22 PM.