STERLING, Ill., May 18 (Reuters) - Northwestern Steel and Wire Co. (OTC BB:NWSW.OB - news), founded in 1879 and operating under Chapter 11 bankruptcy since December, said on Friday it can no longer survive financially and plans to shut down over a matter of weeks, laying off 1,400 steelworkers.

The company, located in northwest Illinois, produces structural steel components for commercial, industrial and residential construction, including rod and selected wire products.

Northwestern Steel President and Chief Executive Officer Frederick Rocchio said in a statement that some critical suppliers chose not to provide materials needed to maintain operations.

Northwestern Steel has struggled recently with competition from cheap imported steel, according to Hoover's.

Electrical furnace, caster and wire mill operations will shut at 7 a.m. CDT (1200 GMT) on Sunday. Rolling mills and shipping operations will continue for several weeks as inventories are rolled into finished product and shipped to customers, the company said.

Andrew Moore, vice president of human resources, said that Northwestern Steel is looking for a buyer, but there are no pending negotiations. Employees will receive no severance pay other than that included in the labor contract, he said.

Personal Note There are SO MANY layoffs being reported but I like to point out the jobs that are lost forever because we can't compete with unlimited cheap labor from overseas. Its simply cheaper to make it overseas and pay the cost of transportation rather than make it here.

-- Guy Daley (guydaley1@netzero.net), May 18, 2001