Heat Treat Industry News
January 31, 2010
Good news for steelworkers at Severstal, U.S. Steel
DEARBORN/ECORSE -- Announcements in two steelmaking centers indicate the industry is taking an up turn.
Severstal North America, with its headquarters in Dearborn is restarting facilities in several other locations in the United States. At nearby Ecorse, 1,400 unionized workers have been called back to U.S. Steel’s Great Lakes Works plant.
OAO Severstal officials said Monday as part of its North American 2010 operating plan certain facilities will be restarted that had been idled previously as a result of weak market conditions. Severstal is one of the world's leading steel and mining companies, with key assets in Russia, the U.S. and Europe.
A statement from Severstal indicated the restarts follow an improving trading performance, as reported with the third quarter financial results.
Severstal Warren, in Warren, Ohio, a fully integrated steel plant, is scheduled to return to service its blast furnace, steelmaking and hot strip mill facilities late in the first quarter.
In addition, Severstal North America's Mountain State Carbon coke making subsidiary in Follansbee, W. Va. (greater Wheeling, W. Va.) will ramp up to full production by the end of January 2010. That facility provides coke to the steel operations in Dearborn.
Severstal Wheeling —also has good news. As previously noted, Wheeling coating lines will return to service late this month. Severstal Wheeling cold rolling complex returned to operation in December. Those plants are in Yorkville and Martins Ferry, Ohio.
The number of employees returning to the Warren facility is currently being discussed with the United Steel Workers with which the company is seeking a new contract to cover all of Severstal North America's steelworker-represented facilities.
Sergei A. Kuznetsov, chief executive officer of Severstal North America, said, “Our North American strategy remains to be a long-term market leader, serving domestic and export customers with light flat rolled steel from five plants. Severstal North America anticipates an improving market for its products over 2010, and we are encouraged by the support we are receiving from all constituencies to resume operations at Warren.”
While the market outlook in North America remains fragile, the management is confident t the improving trading environment warrants the restart of these facilitates, and these actions demonstrate the Group's long-term commitment to this important market, Monday’s statement from the company indicated.
Bette Kovach of Severstal North America in Dearborn noted that the facility in Dearborn maintained operations throughout the major decline in the industry — Mach 2008 to February 2009 — when Severstal and other steel companies idled some plants. She said while the Dearborn plant relies heavily on demand from the auto industry, it has been able to diversify and increase its customer base in other industries.
Workers return to Ecorse plant
Marc Barragan, president of U.S. Steelworkers Local No. 1299, confirmed the good news at U.S. Steel’s Great Lakes Works in Ecorse — the reopening of the plant
Another 250 remain on layoff status since the mill idled operations in January 2009 due to the faltering economy and a drop in customer demand.
“The union strongly feels there are opportunities to bring the remainder of the people who had jobs back, but the company seems more interested in their bottom line,” Barragan said.
“We disagree what the bottom line looks like. We are having some discussions over that. We think the opportunities are indeed there. Moving forward, they could bring the others back.
We are contractually grinding it out with them.”
Barragan said the company is giving large amounts of overtime to those who have been called back instead of opting to bring back all of the workers.
“Management is telling us they are running a program of efficiencies,” he said. “We are contractually discussing opportunities to return the 250 to work, but management isn’t seeing it that way.”
U.S. Steel spokeswoman Erin DiPietro declined to comment, saying the company doesn’t provide updates on its operations.
According to union officials, U.S. Steel unionized employees also have been recalled at two other idled plants — Granite City Works, a steelmaking facility in Illinois, and Hamilton Works, a Canadian plant in Ontario that is being restarted for its coke ovens.
In a February 2009 interview, now-retired U.S. Steel spokesman John Armstrong said he held out hope that the Ecorse plant would eventually reopen.
“The plan is still a temporary idling period, but we cannot tell you when we plan to restart it,” he said. “We hope to call the employees back, assuming they haven’t gotten other jobs. …
“Great Lakes Works is primarily an automotive steel manufacturing facility. Its major customers are the autos. At this point, no one can accurately predict where the economy is going.”
About Severstal North America:
Severstal North America is the fourth largest steelmaker in the United States and specializes in the full range of the highest quality light flat rolled products. Fully integrated operations are located in Michigan, Maryland, Ohio and West Virginia. A new state-of-the-art electric arc furnace operation in Mississippi serves the growing demand for steel in the south-eastern United States. Severstal North America also has several joint ventures for the highest quality coated products.
About OAO Severstal:
OAO Severstal is an international metals and mining company with a listing on the Russian Trading System, Moscow Interbank Currency Exchange and the London Stock Exchange. Incorporated in 1993, the company focuses on high value added and unique niche products and operates high-quality assets in Russia, North America and Europe.
Heritage Newspapers’ Jason Alley contributed to this report.
By Tim Powers, Press & Guide Newspapers - Published: Tuesday, January 26, 2010
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