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World War II in California's Inland Empire

Dr. Eileen V. Wallis, Author

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Kaiser Steel


During the War


The Kaiser Steel company in Fontana seems to have played a major role in steel production on the west coast during the Second World War. A smaller company at the time of the war, the Kaiser Steel company was not producing the amount of steel as well as a low price that Los Angeles industrialists needed at the time. “Earlier in the day western industry’s need for cheaper steel was emphasized by other Los Angeles industrialists.”[1] Kaiser steel would eventually lower its prices however this would create a major issue for the owners of the Kaiser steel company. The Kaiser steel company would say that because of the price drop, they would lose a substantial amount of money. “If U.S Steel reduces prices on products shipped to the West coast, “it will be a great advantage to the Coast but completely put into default Fontana.”[2] Kaiser would go back and forth with the government when it came to the facts about the losses the steel company had gone through. Kaiser would state that the losses would be because of the low prices and the shipbuilding that was being done here on the west coast while the U.S Steel was stating it was just a lack of production. 


After the War


Towards the tail end of the war, Kaiser would propose a massive steel deal in an attempt to rejuvenate the Kaiser steel company. This deal would expand the company because Kaiser foresaw a spike in postwar steel production. “At one point he became expansive in the outlining of Los Angeles’ probable role in the immense industrial development of Southern California.  [3] Kaiser had a feeling that not only would items like washing machines and stove production spike after the war but rail and automobile production would spike as well. “…overall steel production of 1,800,000 a year of steel products ranging from ships, washing machines, housing structural shapes , utensils, roofing and stoves to rails and sheet metal for tinplate and most size pipes.” [4] Kaisers deal and his bold productions would see the companies steel production increase greatly after the war to a point where it actually is said to have broken steel production records. “Henry J. Kaiser said in a year-end statement today that a record breaking 853,000 tons of steel ingots were produced at the Fontana plant in 1948.” [5]

Footnotes

 
[1] Zeman, R. (1945, Oct 09). Coast concerns may buy western plant to get cheaper steel here. Los Angeles Times (1923-Current File)
[2] Francis, Warren B. "Kaiser Claims Net Loss of $18,000,000." Los Angeles Times (1923-Current File), Sep 25, 1946.
[3] "Vast Steel Plan Told by Kaiser." Los Angeles Times (1923-Current File), Jul 17, 1945.
[4] "Vast Steel Plan Told by Kaiser." Los Angeles Times (1923-Current File), Jul 17, 1945.
[5] Kaiser in record steel production. (1949, Jan 07). Los Angeles Times (1923-Current File)
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