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 earliest event reported)  September 1, 1998


                           SETECH, Inc.
      (Exact Name of Registrant as Specified in its Charter)

                             Delaware
          (State or Other Jurisdiction of Incorporation)

     1-10310                                      11-2809189
(Commission File Number)       (I.R.S. Employer Identification No.)


903 Industrial Drive, Murfreesboro, Tennessee             37129
(Address of Principal Executive Offices)               (Zip Code)

                          (615) 890-1700
                    (Issuer's Telephone Number)

905 Industrial Drive, Murfreesboro, Tennessee            37129
(Former Address of Principal Executive Offices)

Item 5.    Other Events

     Effective  September 1, 1998, Michael S. Burnham, Jr., ("Burnham") will no
longer serve as President  or  as  a  member of the Board of Directors of Lewis
Supply Company ("Lewis"), a wholly owned subsidiary of SETECH, Inc. ("SETECH"),
and at this time, SETECH has not named Burnham's succesor as President of Lewis
or his replacement on Lewis' board.

     Commencing September 1, 1998, Burnham  will render services to Lewis as an
independent contractor in order to assist with  the  transition  resulting from
his  departure.   Burnham's  independent  contractor  arrangement  will  expire
January 1, 1999.

     By  written  agreement  with SETECH (the "Agreement"), Burnham has  agreed
that he will not directly or indirectly  engage  in any activity related to the
integrated  industrial  supply business until January  1,  1999,  nor  will  he
directly or indirectly solicit  existing  customers  or  employees  of Lewis or
SETECH  until  September  1,  1999.  This  Agreement  is  a modification of the
noncompete provisions of Burnham's Employment Agreement with SETECH.


                              SIGNATURES

     In  accordance with the requirements of the Exchange Act,  the  registrant
caused this  report  to  be  signed on its behalf by the undersigned, thereunto
duly authorized.


                                      SETECH, INC.



Date: September 1, 1998          By/S/ THOMAS N. EISENMAN
                                    Thomas N. Eisenman, President