In a statement, Gerdau said it decided to strategically reallocate product mix among its special bar quality (SBQ) plants in Monroe, Mich., and Fort Smith, Ark., as a way to rationalize costs and improve customer satisfaction. About 140 employees will be impacted by the decision. 

“This was a difficult decision to make; however, this is an action we must take in order to ensure the overall sustainability of the business,” said Rodrigo Belloc, president of Gerdau Special Steel North America.

The company said the Monroe and Fort Smith facilities are capable of absorbing the additional production. Fort Smith has extensive SBQ capabilities, it said, and it has made US$300 million in improvements to the Monroe plant, upgrading the meltshop, rolling mill and finishing areas.

“Our special steel operations in Monroe and Fort Smith are prepared to handle the increased tons coming off of Jackson,” said Belloc. 

Gerdau will continue to run processing and finishing facilities at the Jackson plant.