UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

                Pursuant to Section 13 OR 15(d) of the Securities
                              Exchange Act of 1934

              Date of Report (Date of the earliest event reported)
                                 August 31, 2005

                     KEYSTONE CONSOLIDATED INDUSTRIES, INC.
             (Exact name of Registrant as specified in its charter)

     Delaware                    1-3919                    37-0364250
  (State or other              (Commission                (IRS Employer
  jurisdiction of             File Number)               Identification
  incorporation)                                              No.)

    5430 LBJ Freeway, Suite 1740, Dallas, TX              75240-2697
    (Address of principal executive offices)              (Zip Code)

               Registrant's telephone number, including area code
                                 (972) 458-0028


         (Former name or former address, if changed since last report.)

Check  the  appropriate  box  below  if the  Form  8-K  filing  is  intended  to
simultaneously  satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2):

[   ]   Written communications pursuant to Rule 425 under the Securities Act
        (17 CFR 230.425)

[   ]   Soliciting  material  pursuant to Rule 14a-12 under the Exchange Act
        (17 CFR 240.14a-12)

[   ]   Pre-commencement communications pursuant to Rule  14d-2(b) under the
        Exchange Act (17 CFR 240.14d-2(b))

[   ]   Pre-commencement communications pursuant to Rule 13e-4(c) under  the
        Exchange Act (17 CFR 240.13e-4(c))


<PAGE>


     At 5:30 p.m.,  central  daylight  time, on August 31, 2005 (the  "Effective
Time"),   Keystone  Consolidated   Industries,   Inc.,  a  Delaware  corporation
("Keystone"),  together  with five of its direct and indirect  subsidiaries  (FV
Steel and Wire Company,  DeSoto  Environmental  Management,  Inc., J.L. Prescott
Company,  Sherman  Wire  Company  (f/k/a/  DeSoto,  Inc.)  and  Sherman  Wire of
Caldwell, Inc.) (collectively, the "Debtors") emerged from Chapter 11 bankruptcy
proceedings.  The  Debtors had  previously  received  confirmation  of the Third
Amended  Joint  Reorganization  Plan (the  "Reorganization  Plan") from the U.S.
Bankruptcy  Court for the  Eastern  District  of  Wisconsin  in  Milwaukee  (the
"Court")  at a  confirmation  hearing  held on August 10,  2005,  as  previously
reported on Keystone's Current Report on Form 8-K filed with the U.S. Securities
and Exchange  Commission  (the "SEC") on August 19, 2005  (Exchange Act File No.
1-3919).

Item 1.01   Entry into a Material Definitive Agreement.

A.  $80 Million Secured Credit Facility

     Effective August 31, 2005 and pursuant to the Reorganization Plan, Keystone
entered into a five-year,  $80 million  secured  credit  facility  with Wachovia
Capital Finance Corporation  (Central).  Proceeds from this credit facility were
used to extinguish  Keystone's  debtor-in-possession  credit  facilities  and to
provide  working  capital  for  Keystone.  Subject  to the  appraised  values of
Keystone's real estate and equipment,  up to $25 million of this credit facility
will be available for Keystone to borrow under term notes.  The remainder of the
credit facility will be available to Keystone under revolving loans,  subject to
limitations  based  upon  formula-determined  amounts of trade  receivables  and
inventories.

     Principal  payments under the term note portion of the credit  facility are
due in monthly  installments  based on either an 84- or  60-month  amortization,
depending  on whether the  advances  were made based on real estate or equipment
appraised values, with any unpaid balances due at maturity. Keystone may also be
required to, under certain conditions, make additional annual principal payments
on the term note portion of this credit facility based on Keystone's excess cash
flow, as defined in the agreement.  Such  additional  payments are limited to $2
million  annually  or $5  million  over the term of the credit  facility.  Under
certain  conditions,  Keystone has the right to borrow up to an  additional  $10
million  under the term note  portion  of the  credit  facility  subject  to the
overall $25 million term note limit.

     Borrowings  under this credit facility bear interest ranging from the prime
rate to the prime rate plus one half of one percent based on  Keystone's  excess
availability  as defined in the agreement.  Keystone also has the option,  under
certain conditions, to choose a Eurodollar Rate that varies from the Euro Dollar
Rate, as defined in the agreement, plus 2.0% to the Euro Dollar Rate plus 2.75%,
based on Keystone's excess availability and whether the borrowings are under the
term note or revolving loan portion of this facility.

     This credit facility is  collateralized  by substantially all of the assets
of Keystone and its wholly owned  subsidiaries,  Engineered Wire Products,  Inc.
("EWP"), Keystone Wire Products, Inc. and FV Steel and Wire Company.

     This credit facility requires Keystone's daily net cash receipts be used to
reduce the revolving loan portion of the credit  facility,  which will result in
Keystone  maintaining  zero  cash  balances  so  long  as  there  is  a  balance
outstanding under the revolving loan portion of the credit facility. This credit
facility also contains certain  restrictive  covenants  relating to, among other
things,  minimum  levels of cash flow,  excess  availability  levels and a fixed
charge coverage ratio,  limitations on payment of dividends on Keystone's common
stock and other provisions customary in lending transactions of this type.

B.  Note Payable to the Unsecured Creditors

     Effective August 31, 2005 and pursuant to the Reorganization Plan, Keystone
has entered into a four-year,  $4.8  million  promissory  note (the "New Secured
Note") to a trustee  (the  "Creditor  Trustee")  for the  benefit  of certain of
Keystone's  pre-petition  unsecured creditors.  The note accrues interest at 12%
per annum until January 1, 2007. During this period,  interest will be converted
to principal  on a quarterly  basis.  In January  2007,  interest  will begin to
accrue at 8% per annum until maturity. This promissory note requires a principal
payment of  approximately  $1.5 million in January  2007,  followed by quarterly
principal payments of approximately $392,000 until maturity.

     The promissory note is collateralized  by a subordinated  security interest
in  Keystone's  equity  interest  in its  wholly  owned  subsidiary,  EWP.  This
promissory note also contains restrictive  covenants identical to Keystone's $80
million secured credit facility as well as certain other restrictive  covenants,
including,  but not limited to, restrictions upon Keystone's ability to sell EWP
and a sale of all or substantially all of the equity interests of Keystone.

C.  Intercorporate Services Agreement

     Effective August 31, 2005 and pursuant to the Reorganization Plan, Keystone
entered  into  an  intercorporate   services   agreement  ("ISA")  with  Contran
Corporation ("Contran"), Keystone's majority shareholder. Under the terms of the
ISA,  employees  of Contran  will  provide  certain  management,  tax  planning,
financial and  administrative  services to Keystone on a fee basis. Such charges
are based upon  estimates of the time devoted by the employees of Contran to the
affairs of  Keystone,  and the  compensation  and  associated  expensed  of such
persons.  Because of the large  number of  companies  affiliated  with  Contran,
Keystone believes it benefits from cost savings and economies of scale gained by
not having certain management, financial and administrative staffs duplicated at
each entity,  thus allowing certain  individuals to provide services to multiple
companies but only be  compensated  by one entity.  The ISA  agreement  requires
Keystone to pay Contran quarterly payments of approximately $261,250 and expires
in December 2006.

Item 1.02   Termination of a Material Definitive Agreement.

A.  Cancellation of Keystone's Unsecured  9 5/8%  (face value $6.15 million) and
6% (face value $14.475 million) Notes

     During August 1997,  Keystone  issued  $100.0  million of 9 5/8% Notes that
matured in 2007. These notes were  collateralized by a lien on substantially all
of the  existing and future  assets of Keystone  and were issued  pursuant to an
indenture that placed many restrictive covenants on Keystone.

     During  March 2002,  Keystone  completed an exchange  offer (the  "Exchange
Offer") with respect to the 9 5/8% Notes pursuant to which,  among other things,
holders of $93.9 million  principal amount of the 9 5/8% Notes exchanged their 9
5/8% Notes (along with accrued  interest)  for various  forms of  consideration,
including newly-issued debt and equity securities of Keystone,  including, among
other  things,  $14.475  million  of the 6% Notes,  and such 9 5/8%  Notes  were
retired.

     As a result of the  Exchange  Offer,  only  $6.15  million  of 9 5/8% Notes
remained outstanding. In addition, the collateral previously securing the 9 5/8%
Notes was  released,  and the 9 5/8% Note  indenture  was  amended to  eliminate
substantially all covenants related to the 9 5/8% Notes.

     The 6% Notes accrued simple interest at 6% per annum,  of which  one-fourth
was to be paid in cash on a semi-annual  basis and  three-fourths  was to accrue
and be paid together with the principal in four installments, one-fourth in each
of March 2009, 2010, 2011 and May 2011.  Keystone had the right to redeem the 6%
Notes,  at its  option,  in  whole  or in part at any  time  with no  prepayment
penalty. The 6% Notes were subordinated to substantially all existing and future
senior or secured  indebtedness of Keystone that was not expressly  subordinated
to the 6% Notes.

     Holders of  Keystone's  unsecured 9 5/8% (face value $6.15  million) and 6%
(face value  $14.475  million)  Notes  (collectively,  the  "Notes") had allowed
claims in  Keystone's  bankruptcy  proceedings  for both  unpaid  principal  and
accrued  interest at February 26, 2004 (the petition date). As such,  these Note
holders will share  pro-rata with  Keystone's  other  unsecured  creditors  with
allowed  claims in a  distribution  of $5.2 million in cash, a $4.8 million note
and 4.9  million  shares of  Keystone's  common  stock  issued  pursuant  to the
Reorganization   Plan.   Effective   August  31,   2005  and   pursuant  to  the
Reorganization Plan, the Notes were cancelled.

B.  Termination of Prior Intercorporate Services Agreement

     The ISA terminated and replaced a prior  Intercorporate  Services Agreement
dated as of January 1, 2001 between Keystone and Contran, the terms of which are
incorporated  herein by reference to Exhibit 10.1 to Keystone's Annual Report on
Form 10-K for the fiscal  year ended  December  31, 2001 that was filed with the
SEC on April 15, 2002 (Exchange Act File No. 1-3919).  The prior  Intercorporate
Services  Agreement  required  Keystone  to pay  Contran  quarterly  payments of
approximately  $251,250  commencing  on  January  1,  2001  and  extending  on a
quarter-to-quarter  basis after  December  31, 2001 until  terminated  by either
party upon  notice  thirty  days in advance of the first day of each  successive
quarter.

Item 2.03   Creation  of  a  Direct Financial  Obligation or an Obligation under
            an Off-Balance Sheet Arrangement of a Registrant.

     The  description of the $80 Million  Secured Credit  Facility  described in
Item 1.01 of this current report is incorporated herein by reference.

Item 3.02   Unregistered Sales of Equity Securities.

         Effective August 31, 2005 and pursuant to the Reorganization Plan,
Keystone issued 5.1 million shares of its common stock, par value $0.01 per
share ("Common Stock"), to Contran and is obligated to issue 4.9 million shares
of Common Stock to its unsecured creditors in exchange for claims such creditors
held against Keystone. For a description of the claims exchanged by the Contran
and the unsecured creditors for the issuance of the shares of Common Stock, see
the Reorganization Plan, the terms of which are incorporated herein by reference
to Exhibit 2.1 of Keystone's Current Report on Form 8-K filed with the SEC on
August 19, 2005 (Exchange Act File No. 1-3919). Since the Court approved
Keystone's issuance of the shares of Common Stock pursuant to the Reorganization
Plan, the issuance is exempt from registration under Section 5 of the Securities
Act of 1933, as amended, pursuant to Section 1145 of the U.S. Bankruptcy Code
and subject, in the case of affiliates, to compliance with Section 1145(b)(1)
with respect to ordinary trading transactions.

Item 3.03   Material Modification to Rights of Security Holders.

         Effective August 31, 2005 and pursuant to the Reorganization Plan, all
shares of Keystone's common and preferred stock outstanding prior to the
Effective Time were cancelled. New shares of Keystone's common stock, $0.01 par
value per share, having the rights set forth in Keystone's Amended and Restated
Certificate of Incorporation, a copy of which is filed as exhibit 3.1 to this
Current Report on Form 8-K, have been, and will be, issued as described in Item
3.02 above.

Item 5.02   Departure of Directors or Principal Officers; Election of Directors;
            Appointment of Principal Officers.

     The following directors are no longer on Keystone's board of directors:

                      Dr. Thomas E. Barry
                      Keith R. Coogan William
                      Spier J. Walter Tucker, Jr.; and

     Effective  August 31, 2005 and  pursuant to the  Reorganization  Plan,  the
following directors are newly appointed to Keystone's board of directors:

                      Richard R. Burkhart
                      John R. Parker
                      Troy T. Taylor
                      Donald P. Zima

     Pursuant  to a Lock-Up  Agreement  dated  March  21,  2005 by and among the
Debtors, Contran, the Official Committee of Unsecured Creditors appointed in the
Debtors'  bankruptcy  proceedings  (the  "OCUC"),  the members of the OCUC,  the
representatives  in the  bankruptcy  proceedings  of  certain  retirees  and the
Independent Steel Workers Alliance, at the Effective Time the board of directors
for Keystone  consisted of seven individuals.  Of these seven  individuals,  two
directors were designated by Contran, two directors were designated by the OCUC,
and the remaining three directors a believed to qualify as independent directors
in accordance with the rules governing  companies  traded on the NASDAQ National
Market System (the "Independent  Directors").  Two of the Independent  Directors
were  designated  by Contran with the OCUC's  consent and the third  Independent
Director was designated by the OCUC with Contran's  consent.  So long as the New
Secured Note is outstanding, but no less than three years after August 31, 2005,
if a vacancy  is created by any of the four  directors  appointed  by Contran or
their  successors,  the  vacancy  shall be  filled  by the  remaining  directors
appointed  by Contran or their  successors.  So long as the New Secured  Note is
outstanding, but no less than three years after August 31, 2005, if a vacancy is
created by any of the three directors appointed by the OCUC or their successors,
the vacancy shall be filled by the remaining  directors appointed by the OCUC or
their  successors,  with the consent of the  Creditor  Trustee,  if the Creditor
Trustee is still in existence.

Item 5.03   Amendments to Articles of Incorporation  or Bylaws; Change in Fiscal
            Year.

     Effective August 31, 2005 and pursuant to the Reorganization Plan, Keystone
amended and restated its certificate of incorporation  and bylaws,  the terms of
each of which are  incorporated  herein by  reference  to Exhibits  3.1 and 3.2,
respectively, to this current report.

Item 9.01   Financial Statements and Exhibits.

(c) Exhibits.

<TABLE>
<CAPTION>
  Item No. Exhibit Index
 --------  ---------------------------------------------------------------------
 <S>        <C>
   2.1      Debtors'   Third  Amended  Joint  Reorganization  Plan  Pursuant  to
            Chapter 11 of the U.S. Bankruptcy Code (incorporated by reference to
            Exhibit 2.1 of the Current Report on Form 8-K Keystone  Consolidated
            Industries,  Inc.  filed  with  the  U.S.  Securities  and  Exchange
            Commission on August 19, 2005 (Exchange Act File No. 1-3919)).

   3.1      Amended  and   Restated  Certificate  of  Incorporation  of Keystone
            Consolidated  Industries,  Inc. filed with the Secretary of State of
            the state of Delaware on August 31, 2005.

   3.2      Amended and Restated  Bylaws of  Keystone  Consolidated  Industries,
            Inc. (Amended and Restated as of August 31, 2005).

  10.1      Intercorporate  Services  Agreement  dated  as  of  January  1, 2001
            between   Keystone   Consolidated   Industries,   Inc.  and  Contran
            Corporation (incorporated by reference to Exhibit 10.1 to the Annual
            Report on Form 10-K for the fiscal year ended December 31, 2001 that
            Keystone   Consolidated   Industries,   Inc.  filed  with  the  U.S.
            Securities  and Exchange  Commission on April 15, 2002 (Exchange Act
            File No. 1-3919)).
</TABLE>


<PAGE>

            SIGNATURE


     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.

                                    KEYSTONE CONSOLIDATED INDUSTRIES, INC.
                                    (Registrant)




                                    By: /s/ Bert E. Downing, Jr.
                                    ---------------------------------
                                    Bert E. Downing, Jr.
                                    Vice President, Chief Financial Officer,
                                    Corporate Controller and Treasurer



Date:  September 7, 2005


<PAGE>

                                INDEX TO EXHIBITS
<TABLE>
<CAPTION>

Exhibit No.    Description
-----------    -----------------------------------------------------------------
<S>            <C>
   2.1         Debtors'  Third   Amended  Joint   Reorganization  Plan  Pursuant
               to  Chapter  11 of the  U.S.  Bankruptcy  Code  (incorporated  by
               reference  to  Exhibit  2.1 of the  Current  Report  on Form  8-K
               Keystone  Consolidated  Industries,  Inc.  filed  with  the  U.S.
               Securities  and Exchange  Commission on August 19, 2005 (Exchange
               Act File No. 1-3919)).

   3.1*        Amended  and  Restated Certificate  of  Incorporation of Keystone
               Consolidated  Industries,  Inc. filed with the Secretary of State
               of the state of Delaware on August 31, 2005.

   3.2*        Amended and Restated Bylaws of Keystone Consolidated  Industries,
               Inc. (Amended and Restated as of August 31, 2005).

  10.1         Intercorporate   Services  Agreement  dated as of January 1, 2001
               between  Keystone  Consolidated  Industries,   Inc.  and  Contran
               Corporation  (incorporated  by  reference  to Exhibit 10.1 to the
               Annual Report on Form 10-K for the fiscal year ended December 31,
               2001 that Keystone Consolidated  Industries,  Inc. filed with the
               U.S.  Securities  and  Exchange  Commission  on  April  15,  2002
               (Exchange Act File No. 1-3919)).
</TABLE>

----------
*  Filed herewith.
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{"company-data": {"conformed-name": "KEYSTONE CONSOLIDATED INDUSTRIES INC", "cik": "0000055604", "assigned-sic": "3312", "irs-number": "370364250", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-03919", "film-number": "051073749"}, "business-address": {"street1": "5430 LBJ FWY STE 1740", "street2": "THREE LINCOLN CENTRE", "city": "DALLAS", "state": "TX", "zip": "75240", "phone": "2144580028"}, "mail-address": {"street1": "5430 LBJ FWY STE 1740", "street2": "THREE LINCOLN CENTRE", "city": "DALLAS", "state": "TX", "zip": "75240"}, "former-company": {"former-conformed-name": "KEYSTONE STEEL & WIRE CO", "date-changed": "19710506"}}
UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

                Pursuant to Section 13 OR 15(d) of the Securities
                              Exchange Act of 1934

              Date of Report (Date of the earliest event reported)
                                 August 31, 2005

                     KEYSTONE CONSOLIDATED INDUSTRIES, INC.
             (Exact name of Registrant as specified in its charter)

     Delaware                    1-3919                    37-0364250
  (State or other              (Commission                (IRS Employer
  jurisdiction of             File Number)               Identification
  incorporation)                                              No.)

    5430 LBJ Freeway, Suite 1740, Dallas, TX              75240-2697
    (Address of principal executive offices)              (Zip Code)

               Registrant's telephone number, including area code
                                 (972) 458-0028

         (Former name or former address, if changed since last report.)

Check  the  appropriate  box  below  if the  Form  8-K  filing  is  intended  to
simultaneously  satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2):

[   ]   Written communications pursuant to Rule 425 under the Securities Act
        (17 CFR 230.425)

[   ]   Soliciting  material  pursuant to Rule 14a-12 under the Exchange Act
        (17 CFR 240.14a-12)

[   ]   Pre-commencement communications pursuant to Rule  14d-2(b) under the
        Exchange Act (17 CFR 240.14d-2(b))

[   ]   Pre-commencement communications pursuant to Rule 13e-4(c) under  the
        Exchange Act (17 CFR 240.13e-4(c))
At 5:30 p.m.,  central  daylight  time, on August 31, 2005 (the  "Effective
Time"),   Keystone  Consolidated   Industries,   Inc.,  a  Delaware  corporation
("Keystone"),  together  with five of its direct and indirect  subsidiaries  (FV
Steel and Wire Company,  DeSoto  Environmental  Management,  Inc., J.L. Prescott
Company,  Sherman  Wire  Company  (f/k/a/  DeSoto,  Inc.)  and  Sherman  Wire of
Caldwell, Inc.) (collectively, the "Debtors") emerged from Chapter 11 bankruptcy
proceedings.  The  Debtors had  previously  received  confirmation  of the Third
Amended  Joint  Reorganization  Plan (the  "Reorganization  Plan") from the U.S.
Bankruptcy  Court for the  Eastern  District  of  Wisconsin  in  Milwaukee  (the
"Court")  at a  confirmation  hearing  held on August 10,  2005,  as  previously
reported on Keystone's Current Report on Form 8-K filed with the U.S. Securities
and Exchange  Commission  (the "SEC") on August 19, 2005  (Exchange Act File No.
1-3919).

Item 1.01   Entry into a Material Definitive Agreement.

A.  $80 Million Secured Credit Facility

     Effective August 31, 2005 and pursuant to the Reorganization Plan, Keystone
entered into a five-year,  $80 million  secured  credit  facility  with Wachovia
Capital Finance Corporation  (Central).  Proceeds from this credit facility were
used to extinguish  Keystone's  debtor-in-possession  credit  facilities  and to
provide  working  capital  for  Keystone.  Subject  to the  appraised  values of
Keystone's real estate and equipment,  up to $25 million of this credit facility
will be available for Keystone to borrow under term notes.  The remainder of the
credit facility will be available to Keystone under revolving loans,  subject to
limitations  based  upon  formula-determined  amounts of trade  receivables  and
inventories.

     Principal  payments under the term note portion of the credit  facility are
due in monthly  installments  based on either an 84- or  60-month  amortization,
depending  on whether the  advances  were made based on real estate or equipment
appraised values, with any unpaid balances due at maturity. Keystone may also be
required to, under certain conditions, make additional annual principal payments
on the term note portion of this credit facility based on Keystone's excess cash
flow, as defined in the agreement.  Such  additional  payments are limited to $2
million  annually  or $5  million  over the term of the credit  facility.  Under
certain  conditions,  Keystone has the right to borrow up to an  additional  $10
million  under the term note  portion  of the  credit  facility  subject  to the
overall $25 million term note limit.

     Borrowings  under this credit facility bear interest ranging from the prime
rate to the prime rate plus one half of one percent based on  Keystone's  excess
availability  as defined in the agreement.  Keystone also has the option,  under
certain conditions, to choose a Eurodollar Rate that varies from the Euro Dollar
Rate, as defined in the agreement, plus 2.0% to the Euro Dollar Rate plus 2.75%,
based on Keystone's excess availability and whether the borrowings are under the
term note or revolving loan portion of this facility.

     This credit facility is  collateralized  by substantially all of the assets
of Keystone and its wholly owned  subsidiaries,  Engineered Wire Products,  Inc.
("EWP"), Keystone Wire Products, Inc. and FV Steel and Wire Company.

     This credit facility requires Keystone's daily net cash receipts be used to
reduce the revolving loan portion of the credit  facility,  which will result in
Keystone  maintaining  zero  cash  balances  so  long  as  there  is  a  balance
outstanding under the revolving loan portion of the credit facility. This credit
facility also contains certain  restrictive  covenants  relating to, among other
things,  minimum  levels of cash flow,  excess  availability  levels and a fixed
charge coverage ratio,  limitations on payment of dividends on Keystone's common
stock and other provisions customary in lending transactions of this type.

B.  Note Payable to the Unsecured Creditors

     Effective August 31, 2005 and pursuant to the Reorganization Plan, Keystone
has entered into a four-year,  $4.8  million  promissory  note (the "New Secured
Note") to a trustee  (the  "Creditor  Trustee")  for the  benefit  of certain of
Keystone's  pre-petition  unsecured creditors.  The note accrues interest at 12%
per annum until January 1, 2007. During this period,  interest will be converted
to principal  on a quarterly  basis.  In January  2007,  interest  will begin to
accrue at 8% per annum until maturity. This promissory note requires a principal
payment of  approximately  $1.5 million in January  2007,  followed by quarterly
principal payments of approximately $392,000 until maturity.

     The promissory note is collateralized  by a subordinated  security interest
in  Keystone's  equity  interest  in its  wholly  owned  subsidiary,  EWP.  This
promissory note also contains restrictive  covenants identical to Keystone's $80
million secured credit facility as well as certain other restrictive  covenants,
including,  but not limited to, restrictions upon Keystone's ability to sell EWP
and a sale of all or substantially all of the equity interests of Keystone.

C.  Intercorporate Services Agreement

     Effective August 31, 2005 and pursuant to the Reorganization Plan, Keystone
entered  into  an  intercorporate   services   agreement  ("ISA")  with  Contran
Corporation ("Contran"), Keystone's majority shareholder. Under the terms of the
ISA,  employees  of Contran  will  provide  certain  management,  tax  planning,
financial and  administrative  services to Keystone on a fee basis. Such charges
are based upon  estimates of the time devoted by the employees of Contran to the
affairs of  Keystone,  and the  compensation  and  associated  expensed  of such
persons.  Because of the large  number of  companies  affiliated  with  Contran,
Keystone believes it benefits from cost savings and economies of scale gained by
not having certain management, financial and administrative staffs duplicated at
each entity,  thus allowing certain  individuals to provide services to multiple
companies but only be  compensated  by one entity.  The ISA  agreement  requires
Keystone to pay Contran quarterly payments of approximately $261,250 and expires
in December 2006.

Item 1.02   Termination of a Material Definitive Agreement.

A.  Cancellation of Keystone's Unsecured  9 5/8%  (face value $6.15 million) and
6% (face value $14.475 million) Notes

     During August 1997,  Keystone  issued  $100.0  million of 9 5/8% Notes that
matured in 2007. These notes were  collateralized by a lien on substantially all
of the  existing and future  assets of Keystone  and were issued  pursuant to an
indenture that placed many restrictive covenants on Keystone.

     During  March 2002,  Keystone  completed an exchange  offer (the  "Exchange
Offer") with respect to the 9 5/8% Notes pursuant to which,  among other things,
holders of $93.9 million  principal amount of the 9 5/8% Notes exchanged their 9
5/8% Notes (along with accrued  interest)  for various  forms of  consideration,
including newly-issued debt and equity securities of Keystone,  including, among
other  things,  $14.475  million  of the 6% Notes,  and such 9 5/8%  Notes  were
retired.

     As a result of the  Exchange  Offer,  only  $6.15  million  of 9 5/8% Notes
remained outstanding. In addition, the collateral previously securing the 9 5/8%
Notes was  released,  and the 9 5/8% Note  indenture  was  amended to  eliminate
substantially all covenants related to the 9 5/8% Notes.

     The 6% Notes accrued simple interest at 6% per annum,  of which  one-fourth
was to be paid in cash on a semi-annual  basis and  three-fourths  was to accrue
and be paid together with the principal in four installments, one-fourth in each
of March 2009, 2010, 2011 and May 2011.  Keystone had the right to redeem the 6%
Notes,  at its  option,  in  whole  or in part at any  time  with no  prepayment
penalty. The 6% Notes were subordinated to substantially all existing and future
senior or secured  indebtedness of Keystone that was not expressly  subordinated
to the 6% Notes.

     Holders of  Keystone's  unsecured 9 5/8% (face value $6.15  million) and 6%
(face value  $14.475  million)  Notes  (collectively,  the  "Notes") had allowed
claims in  Keystone's  bankruptcy  proceedings  for both  unpaid  principal  and
accrued  interest at February 26, 2004 (the petition date). As such,  these Note
holders will share  pro-rata with  Keystone's  other  unsecured  creditors  with
allowed  claims in a  distribution  of $5.2 million in cash, a $4.8 million note
and 4.9  million  shares of  Keystone's  common  stock  issued  pursuant  to the
Reorganization   Plan.   Effective   August  31,   2005  and   pursuant  to  the
Reorganization Plan, the Notes were cancelled.

B.  Termination of Prior Intercorporate Services Agreement

     The ISA terminated and replaced a prior  Intercorporate  Services Agreement
dated as of January 1, 2001 between Keystone and Contran, the terms of which are
incorporated  herein by reference to Exhibit 10.1 to Keystone's Annual Report on
Form 10-K for the fiscal  year ended  December  31, 2001 that was filed with the
SEC on April 15, 2002 (Exchange Act File No. 1-3919).  The prior  Intercorporate
Services  Agreement  required  Keystone  to pay  Contran  quarterly  payments of
approximately  $251,250  commencing  on  January  1,  2001  and  extending  on a
quarter-to-quarter  basis after  December  31, 2001 until  terminated  by either
party upon  notice  thirty  days in advance of the first day of each  successive
quarter.

Item 2.03   Creation  of  a  Direct Financial  Obligation or an Obligation under
            an Off-Balance Sheet Arrangement of a Registrant.

     The  description of the $80 Million  Secured Credit  Facility  described in
Item 1.01 of this current report is incorporated herein by reference.

Item 3.02   Unregistered Sales of Equity Securities.

         Effective August 31, 2005 and pursuant to the Reorganization Plan,
Keystone issued 5.1 million shares of its common stock, par value $0.01 per
share ("Common Stock"), to Contran and is obligated to issue 4.9 million shares
of Common Stock to its unsecured creditors in exchange for claims such creditors
held against Keystone. For a description of the claims exchanged by the Contran
and the unsecured creditors for the issuance of the shares of Common Stock, see
the Reorganization Plan, the terms of which are incorporated herein by reference
to Exhibit 2.1 of Keystone's Current Report on Form 8-K filed with the SEC on
August 19, 2005 (Exchange Act File No. 1-3919). Since the Court approved
Keystone's issuance of the shares of Common Stock pursuant to the Reorganization
Plan, the issuance is exempt from registration under Section 5 of the Securities
Act of 1933, as amended, pursuant to Section 1145 of the U.S. Bankruptcy Code
and subject, in the case of affiliates, to compliance with Section 1145(b)(1)
with respect to ordinary trading transactions.

Item 3.03   Material Modification to Rights of Security Holders.

         Effective August 31, 2005 and pursuant to the Reorganization Plan, all
shares of Keystone's common and preferred stock outstanding prior to the
Effective Time were cancelled. New shares of Keystone's common stock, $0.01 par
value per share, having the rights set forth in Keystone's Amended and Restated
Certificate of Incorporation, a copy of which is filed as exhibit 3.1 to this
Current Report on Form 8-K, have been, and will be, issued as described in Item
3.02 above.

Item 5.02   Departure of Directors or Principal Officers; Election of Directors;
            Appointment of Principal Officers.

     The following directors are no longer on Keystone's board of directors:

                      Dr. Thomas E. Barry
                      Keith R. Coogan William
                      Spier J. Walter Tucker, Jr.; and

     Effective  August 31, 2005 and  pursuant to the  Reorganization  Plan,  the
following directors are newly appointed to Keystone's board of directors:

                      Richard R. Burkhart
                      John R. Parker
                      Troy T. Taylor
                      Donald P. Zima

     Pursuant  to a Lock-Up  Agreement  dated  March  21,  2005 by and among the
Debtors, Contran, the Official Committee of Unsecured Creditors appointed in the
Debtors'  bankruptcy  proceedings  (the  "OCUC"),  the members of the OCUC,  the
representatives  in the  bankruptcy  proceedings  of  certain  retirees  and the
Independent Steel Workers Alliance, at the Effective Time the board of directors
for Keystone  consisted of seven individuals.  Of these seven  individuals,  two
directors were designated by Contran, two directors were designated by the OCUC,
and the remaining three directors a believed to qualify as independent directors
in accordance with the rules governing  companies  traded on the NASDAQ National
Market System (the "Independent  Directors").  Two of the Independent  Directors
were  designated  by Contran with the OCUC's  consent and the third  Independent
Director was designated by the OCUC with Contran's  consent.  So long as the New
Secured Note is outstanding, but no less than three years after August 31, 2005,
if a vacancy  is created by any of the four  directors  appointed  by Contran or
their  successors,  the  vacancy  shall be  filled  by the  remaining  directors
appointed  by Contran or their  successors.  So long as the New Secured  Note is
outstanding, but no less than three years after August 31, 2005, if a vacancy is
created by any of the three directors appointed by the OCUC or their successors,
the vacancy shall be filled by the remaining  directors appointed by the OCUC or
their  successors,  with the consent of the  Creditor  Trustee,  if the Creditor
Trustee is still in existence.

Item 5.03   Amendments to Articles of Incorporation  or Bylaws; Change in Fiscal
            Year.

     Effective August 31, 2005 and pursuant to the Reorganization Plan, Keystone
amended and restated its certificate of incorporation  and bylaws,  the terms of
each of which are  incorporated  herein by  reference  to Exhibits  3.1 and 3.2,
respectively, to this current report.

Item 9.01   Financial Statements and Exhibits.

(c) Exhibits.
Item No. Exhibit Index
 --------  ---------------------------------------------------------------------
2.1      Debtors'   Third  Amended  Joint  Reorganization  Plan  Pursuant  to
            Chapter 11 of the U.S. Bankruptcy Code (incorporated by reference to
            Exhibit 2.1 of the Current Report on Form 8-K Keystone  Consolidated
            Industries,  Inc.  filed  with  the  U.S.  Securities  and  Exchange
            Commission on August 19, 2005 (Exchange Act File No. 1-3919)).

   3.1      Amended  and   Restated  Certificate  of  Incorporation  of Keystone
            Consolidated  Industries,  Inc. filed with the Secretary of State of
            the state of Delaware on August 31, 2005.

   3.2      Amended and Restated  Bylaws of  Keystone  Consolidated  Industries,
            Inc. (Amended and Restated as of August 31, 2005).

  10.1      Intercorporate  Services  Agreement  dated  as  of  January  1, 2001
            between   Keystone   Consolidated   Industries,   Inc.  and  Contran
            Corporation (incorporated by reference to Exhibit 10.1 to the Annual
            Report on Form 10-K for the fiscal year ended December 31, 2001 that
            Keystone   Consolidated   Industries,   Inc.  filed  with  the  U.S.
            Securities  and Exchange  Commission on April 15, 2002 (Exchange Act
            File No. 1-3919)).
SIGNATURE

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.

                                    KEYSTONE CONSOLIDATED INDUSTRIES, INC.
                                    (Registrant)

                                    By: /s/ Bert E. Downing, Jr.
                                    ---------------------------------
                                    Bert E. Downing, Jr.
                                    Vice President, Chief Financial Officer,
                                    Corporate Controller and Treasurer

Date:  September 7, 2005
INDEX TO EXHIBITS
Exhibit No.    Description
-----------    -----------------------------------------------------------------
2.1         Debtors'  Third   Amended  Joint   Reorganization  Plan  Pursuant
               to  Chapter  11 of the  U.S.  Bankruptcy  Code  (incorporated  by
               reference  to  Exhibit  2.1 of the  Current  Report  on Form  8-K
               Keystone  Consolidated  Industries,  Inc.  filed  with  the  U.S.
               Securities  and Exchange  Commission on August 19, 2005 (Exchange
               Act File No. 1-3919)).

   3.1*        Amended  and  Restated Certificate  of  Incorporation of Keystone
               Consolidated  Industries,  Inc. filed with the Secretary of State
               of the state of Delaware on August 31, 2005.

   3.2*        Amended and Restated Bylaws of Keystone Consolidated  Industries,
               Inc. (Amended and Restated as of August 31, 2005).

  10.1         Intercorporate   Services  Agreement  dated as of January 1, 2001
               between  Keystone  Consolidated  Industries,   Inc.  and  Contran
               Corporation  (incorporated  by  reference  to Exhibit 10.1 to the
               Annual Report on Form 10-K for the fiscal year ended December 31,
               2001 that Keystone Consolidated  Industries,  Inc. filed with the
               U.S.  Securities  and  Exchange  Commission  on  April  15,  2002
               (Exchange Act File No. 1-3919)).
----------
*  Filed herewith.