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Republic Steel Plans New EAF at Lorain, Ohio Facility
11/17/2011 - Republic Steel announced plans to invest $85.2 million in an electric arc furnace and associated equipment at its steelmaking facility in Lorain, Ohio.
Republic Steel announced plans to invest $85.2 million in an electric arc furnace and associated equipment at its steelmaking facility in Lorain, Ohio. The location for the investment, which will help the company meet the growing demand for SBQ steel, was selected for its proximity both to customers as well as Republic’s skilled workforce.
The new furnace, which is expected to increase the company's annual steel production by one million tons, represents Lorain's first significant growth in steelmaking in the 21st century. It will also enable the production of bloom cast for the production of SBQ bar and the production of seamless tube rounds.
"This investment in our Lorain plant will help Republic Steel maintain its position as the industry leader in SBQ manufacturing," said Republic Steel President and CEO Jaime Vigil, in announcing the investment. "The additional capacity created by the new furnace will allow us more flexibility and efficiency in delivering the highly engineered products our customers require."
On hand for the announcement were Ohio Governor John Kasich and local dignitaries showing support for the project's role in bringing jobs and prosperity to Lorain and positioning the state of Ohio to be a leader in tomorrow's economy.
Republic said its investment in the new furnace is subject to finalization and ratification of a new labor agreement with the United Steelworkers. The company estimates the project will bring 449 new jobs and help to retain 489 existing jobs at the Lorain facility.
Construction of the electric arc furnace is scheduled to begin in 2012 and be completed in mid-2013.
Established in 1886, Republic Steel is celebrating its 125th anniversary as a leader in the production of SBQ and providing continuous service to its customers. Republic Steel was acquired in July 2005 by Industrias CH, S.A de C.V. (ICH), a rapidly growing steel producer and processor based in Mexico City. The company's strategic alliance with ICH helps strengthen its relationships with customers expanding in Mexico and South America. Since 2005, ICH has invested more than $600 million into Republic Steel to maintain the company's position as the forefront of the SBQ industry.
With headquarters in Canton, Ohio, and steelmaking capabilities in Canton and Lorain, Ohio, Republic Steel operates value-added rolling and finishing facilities in Canton, Lorain, and Massillon, Ohio; Lackawanna, N.Y.; Gary, Ind.; and Hamilton, Ontario. Republic employs approximately 2000 people.
