Gerdau Ameristeel Reaches Idling Agreement with USW
08/31/2009 - Gerdau Ameristeel has reached agreement with the United Steel Workers regarding the suspension of production at its Sand Springs, Okla., steel mill. Production will wind down over the next several weeks.
Gerdau Ameristeel Corp. has reached agreement with the United Steel Workers regarding the suspension of production at its Sand Springs, Okla., steel mill. Members of USW Local 2741 accepted the terms and conditions of the agreement; Gerdau Ameristeel expects to incur an accounting charge within an earlier-announced range.
Production at the mill is anticipated to wind down over the next several weeks. The company is working with local, state, and federal agencies to offer assistance to impacted employees, who have the choice of extended recall rights or severance as outlined in the collective bargaining agreement.
Service to Gerdau Ameristeel customers will be uninterrupted due to its network of mills in North America.
The company announced in June that it would enter into discussions with the USW regarding the potential closure of the mill. The company continues to investigate options to modernize the Sand Springs Mill and to resume production to meet future demands. Discussions with state and local government officials regarding potential economic incentives are ongoing.
Even if an agreement is reached regarding these economic incentives, Gerdau Ameristeel estimates that the mill will be idled for at least 24 months while required capital improvements are completed.
Gerdau Ameristeel is the second largest mini-mill steel producer in North America, with annual manufacturing capacity of approximately 12 million tons of mill-finished steel products. Through its vertically integrated network of mini-mills, scrap recycling facilities, and downstream operations, the company serves customers throughout the United States and Canada. Its products are generally sold to steel service centers, steel fabricators, or directly to OEMs for use in a variety of industries, including construction, metal building, manufacturing, automotive, mining, cellular and electrical transmission and equipment manufacturing.
