AK Steel Temporarily Shutting Plants in Ohio, Kentucky
AK Steel Holding Corp. has said it is temporarily closing plants in Ohio and Kentucky because of economic turmoil that has sharply lowered demand for its steel products, reports the Associate Press (New York, NY). The company, based in West Chester, OH, said the facilities in Mansfield, OH, and Ashland, KY, will remain idle until early to mid-January. An Ashland plant that produces coke, a steel-making material, will continue to operate at reduced levels.
AK Steel halted steel production and shipping earlier this week at the Mansfield plant, which employs 365 people and makes flat-rolled steel used mainly in automotive exhaust systems. A small number of workers will continue to maintain the plant in anticipation of a resumption of production, the company said. The Ashland plant’s blast furnace, steelmaking, casting and coating operations will be idled later this month. The plant employs 1,100 people, about 275 of whom work at the facility’s coke plant, which will continue to operate at reduced levels. Some employees will remain at the plant, which makes flat-rolled steel used in autos and appliances, to prepare for a restart.
“We remain hopeful that we will be able to return our dedicated and hardworking employees to their jobs as swiftly as possible,” James L. Wainscott, AK Steel’s chairman, president and chief executive, said in a statement. “Of course, that depends entirely on credit availability and consumer confidence, which are at the heart of this serious economic downturn.” A spokesman for AK Steel did not immediately respond to a message seeking comment.
Mike Hewlett, president of United Steelworkers of America Local 1865, said union officials were told Tuesday that the company planned layoffs at the Ashland plant starting Nov. 22. The plant employs about 700 union workers, he said. “We’ve asked them how long and they had no answer to that question,” he said. A finishing line will continue running at least temporarily to handle existing work, but its future will depend the amount of additional orders, Hewlett said.
Last week, AK Steel lowered its projections for steel shipments in the fourth quarter by about 14 percent, citing weaker-than-expected U.S. and global economic conditions. The company said it expects shipments to be closer to 1.2 million tons than the 1.4 million tons forecast when the company reported a jump in third-quarter profit last month.
Associated Press Writer Bruce Schreiner in Louisville, Ky., contributed to this report.
About the Author: "J. J." Johnson John
