Report: Gerdau to Idle Cambridge, Ontario, Melt Shop
08/12/2013 - The steel company Gerdau, headquartered in Rio de Janeiro, has announced plans to idle the melt shop at its Cambridge, Ontario, steel mill complex, according to Recycling Today.
Philip Bell, a spokesman for the company, says Gerdau will taper off its melt shop operations during the next several weeks. Gerdau expects the melt shop to be idle until the end of the year at least, Bell says, though the company will continue to monitor market conditions to determine if a restart is warranted.
The company says it expects a total of 100 employees to be laid off as a result of the idling.
According to Gerdau, “Due to the slower than expected economic recovery and the impact of imports, the company has decided to shift billet production from its smaller melt shop at the Cambridge, Ontario, mill to its larger melt shop in Whitby, Ontario, which has the capacity to produce enough billets for both mills under current market conditions. The Cambridge rolling mill will continue operating with billets supplied from Whitby.”
The company adds, “Staffing level adjustments are expected to take place over the next several weeks as the company applies the provisions in its collective bargaining agreement and evaluates available job opportunities at the Cambridge and Whitby mills. We will continue to make our full range of products and work closely with customers to ensure their requirements are met…”
