Severstal to Idle Operations at Wheeling, Warren
05/08/2009 - Severstal International announces plans to indefinitely idle the steelmaking and hot rolling operations at Severstal Wheeling, and to indefinitely idle all production and finishing operations at its Severstal Warren facility.
Severstal International announced plans to indefinitely idle the steelmaking and hot rolling operations at Severstal Wheeling Inc. due to continued fall-off in customer orders and deterioration of economic conditions.
The company said it would also temporarily idle the Wheeling facility’s cold rolling and coating operations in the coming weeks as it works to balance production with orders across its business.
Severstal also announced it would indefinitely idle all production and finishing operations at its Severstal Warren Inc. facility until there is an improvement in market conditions. The company had earlier (Feb. 27) announced the temporary cessation of operations for that facility’s steel galvanizing line.
“These are difficult decisions that have not been taken lightly and without careful consideration,” commented Gregory Mason, CEO of Severstal International. “Unfortunately, due to the continued deterioration of market conditions across the entire steel industry, they are necessary to ensure the long-term sustainability of our U.S. business.
The announced idling will affect about 1900 employees at the Wheeling facility and about 1200 at Warren, all of whom are now or soon will be placed on layoff. Severstal issued Worker Adjustment and Retraining Notification (WARN) Notices at the Wheeling and Warren facilities in anticipation of long-term idling,
“I want to restate our commitment to our employees, their families, and the communities in which we operate,” continued Mason. “We still strongly believe in the viability of our U.S. facilities and the long-term fundamentals of the U.S. steel industry. We are making our best effort as a company to manage prudently through this downturn so that we are well positioned to maximize success when conditions improve.”
The company said that Severstal International would continue to work closely with the United Steel Workers.
