Weak Market Forces Union Electric to Consider Idling Roll Plant
11/02/2016 - Eight months after acquiring it, Union Electric Steel Corp. and parent Ampco-Pittsburgh have given notice that they might idle parts of the Åkers National Roll Co. plant in Pennsylvania due to market conditions.
“Cast roll demand in 2016 has continued to decline, resulting in low utilization rates at our cast roll manufacturing plants. Åkers National Roll has been especially challenged due to a high cost structure, made worse by a strong U.S. dollar,” Union Electric Steel president Rodney Scagline said in a statement.
“Union Electric Steel is restructuring its global cast roll operations to be more competitive in current market conditions,” he said. “We believe that consolidation of operations will improve overall plant utilization and our financial performance.”
The company said layoffs are to begin in early January 2017. It did not say how many workers would be affected by the decision, and a copy of the WARN Act notification was not immediately available.
“We regret that these decisions are necessary to bridge this period of extremely challenging market conditions,” Ampco-Pittsburgh chief executive John Stanik said in a statement.
Ampco acquired National Roll as part of its Åckers AB acquisition, which closed in March. The company said shipments wouldn’t be disrupted if the plant was idled.
“Union Electric Steel is restructuring its global cast roll operations to be more competitive in current market conditions,” he said. “We believe that consolidation of operations will improve overall plant utilization and our financial performance.”
The company said layoffs are to begin in early January 2017. It did not say how many workers would be affected by the decision, and a copy of the WARN Act notification was not immediately available.
“We regret that these decisions are necessary to bridge this period of extremely challenging market conditions,” Ampco-Pittsburgh chief executive John Stanik said in a statement.
Ampco acquired National Roll as part of its Åckers AB acquisition, which closed in March. The company said shipments wouldn’t be disrupted if the plant was idled.
