Geneva Steel Seeks Loan from State

SALT LAKE CITY?Geneva Steel wants a state loan guarantee of up to $10 million to help the bankrupt steelmaker become more efficient, Geneva chairman Joe Cannon said Tuesday.

Geneva, which has struggled to compete with lower-priced imported steel, filed for Chapter 11 bankruptcy protection in January for the second time in three years.

The proposed loan, backed by the guarantee, would be used to help build a Utah Power substation in northern Utah County that would power the steel plant’s new equipment.

The substation would cost around $20 million, but between $7 to $8 million of that will be needed to provide electricity just for Geneva’s new electric furnace.