1,900 Local Severstal Employees Laid Off
Posted: 11:25 am EDT May 7, 2009Updated: 12:35 am EDT May 8, 2009
The local steel industry received another blow Thursday when Severstal North America announced its cold rolling and coating operations in Martins Ferry and Yorkville will be temporarily idled.As a result of the idling, an additional 600 steelworkers will be laid off, bringing the number of local Severstal employees laid off to about 1,900.About 1,300 workers are already laid off from the company's hot rolling operations in the Steubenville-Mingo area, and those operations will continue to be idled.Severstal officials did not give any timetable as to when any of the plants will go back on-line and when or if workers will get their jobs back.In a news release, the company said the operations will be temporarily idled in the coming weeks while the company "balances production with orders across its business."Severstal officials blamed their decision on an economic downturn partnered with shrinking orders. Company officials said they remain committed to the U.S. steel market but have no other choice.The mayor of Martins Ferry said city leaders remain hopeful for a brighter future, but they are prepared for the worst-case scenario."I really look on the bright side of things," said Mayor Phil Wallace. "I think they're going to shut down for a while but I believe that they will come back."The announcement marks the largest steel shutdown in more than a decade, but it has been brewing for months.Severstal took over Wheeling-Pitt in August 2008. The company's No. 5 blast furnace was shut down in September, and its electric arc furnace at the company's North Plant was idled at the end of March.Mingo Junction Mayor Domenic Chappano said the village has already lost 50 percent of the revenue it used to get from the Severstal plant. With news that the plant could stay idle long-term, he said he will meet with village department heads to tighten up budgets even more."We're going to do the best we can to basically keep everyone working. We won't curtail anything we do as far as for the residents," Chappano said.The mayor said he is hopeful they can make it through August before the village must consider even more cuts.Local 1190's new union president, Bill Bensie, who just started yesterday, said even in light of the announcements, he and his fellow steelworkers are staying strong and staying positive."We have hope, you know what I mean? This is our livelihood, this mill down here. And every one of us believes we'll come back and we'll continue to work," Bensie said.In addition, Severstal also announced it will leave its headquarters building in downtown Wheeling.Company officials said layoffs have already taken place there and employees who are still working will eventually be moved closer to the operations they serve.Stay with NEWS9 and WTOV9.com for continuing coverage.
Previous Stories:
- May 1, 2009: Severstal Representative Responds To Talk About Possible Layoffs
- April 28, 2009: Severstal Officials Meet With Mingo Junction Mayor
- March 25, 2009: Severstal North America Gets New CEO
- March 12, 2009: Lack Of Production At Severstal Could Hurt Schools
- March 9, 2009: All Operations To Idle At Severstal's Steubenville-Mingo Plants
- March 7, 2009: Severstal Steel Schedules Meetings With Workers
- January 8, 2009: Severstal Announces Temporary Workforce Reductions
- September 26, 2008: Severstal Discusses Voluntary Layoffs
- August 13, 2008: On The Job For One Week, Steel Plant Executives Talk Business
- August 5, 2008: Severstal Purchases Wheeling Pitt Parent Company
- August 4, 2008: Severstal Plans To Make Company Private
- June 26, 2008: SeverStal To Takeover Wheeling-Pittsburgh Steel
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