Officials: Put plant to work
Lawmakers urge Severstal to either reopen or sell Ohio steel millsBy LARRY RINGLER Tribune Chronicle
State Rep. Tom Letson, D-Warren, joined two other state-elected officials Wednesday in announcing they sent a letter to Severstal North America Inc. asking the company to resume steel production at its Ohio mills or sell them to a company that will.
''We are disappointed that several Severstal North America facilities in Ohio are standing unused at a time when other companies are expressing interest in utilizing them,'' Letson, state Sen. Jason Wilson, D-Columbiana, and Rep. John Domenick, D-Smithfield, wrote in the letter. ''Our constituents feel the pain of being laid off from your plants, and all concerned would be best served by having these plants operating again and the workers again gainfully employed.''
Other idle Severstal Ohio plants are in Mingo Junction, Martins Ferry and Yorkville.
Severstal North America spokeswoman Bette Kovach reiterated in an e-mail the company's position that it's committed to the U.S. market and will restart facilities when the market returns for their products.
She noted capacity utilization for the company's three active facilities is about 95 percent, but added orders typically decline with the approach of winter.
''We will consider reactivating idle facilities when the market returns for their products and when we are sure that the demand is sustainable,'' she said.
Ed Machingo, president of the 1,000-member United Steelworkers Local 1375, said his members are upset because Severstal is sending the local mill's orders to plants in Dearborn, Mich., and Columbus, Miss., to boost their utilization.
Steelworkers are trying to address that issue because the Dearborn mill is represented by the United Auto Workers, while the Columbus facility is nonunion, he said.
Machingo also said there are parties interested in Severstal Warren but that Russia-based OAO Severstal Chief Executive Officer Alexey Mordashov refuses to sell.
''Our members are upset about this. It's a good thing our lawmakers are taking this stand finally,'' Machingo said.
He noted Trumbull County Commissioner Frank Fuda is the only local elected official who regularly visits the union hall.
Letson said the lawmakers' goal was to remind Severstal about the Mahoning Valley's ''incredible history in metalworking, that we have steelworkers eager to go back to work and that we have what we think is one of the finest continuous casting facilities in the country.''
He said he considers the area lucky to have Severstal as the mill's owner because the company knows how to make steel.
''Our intent was to be encouraging,'' he said. ''When (Severstal) maxes out its facilities, I want us to be next in line.''
Next week will mark the year anniversary of the first wave of layoffs at Severstal Warren, when about 100 United Steelworkers were idled as the economy began to slide amid the worst downturn since the 1930s Great Depression. The mill went totally silent in the spring, putting most of its 1,200-plus hourly and salaried employees out of work.
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unionbredunionfed
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10-26-09 7:50 AM
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The plain truth is that the Warren plant makes more profit, more quality grades of steel than all the other plants, period. The orders are up but when they are being "stolen" and run in dearborn and sparrows point how can we start up warren? They are also not even able to make some of the grades so they're telling "our" customers that they will have to go elsewhere to purchase the steel they need to make the products to sell.
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accstud
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10-22-09 8:25 PM
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Once again, costs are not shared with the locations. Corporate knows, unless they are telling secrets or better yet, they are telling other locations except for Warren. But I know Warren's people who handled costs did not know about the other plants.
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JoeCool
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10-22-09 5:39 PM
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stlwkr - If true that they are only running their most profitable operations, why isn't Warren up and running? Don't we have the best darned union workers that could ever read at a fourth grade level?
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JoeCool
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10-22-09 5:39 PM
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stlwkr - If true that they are only running their most profitable operations, why isn't Warren up and running? Don't we have the best darned union workers that could ever ead at a fourth grade level?
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jmill46
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10-22-09 12:33 PM
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Republicans still trying to blame the current economic climate on the current administration. Insider wake up, the Bush cronies did alot of damage, and the only one's winning are his fat friends, all the way to the bank.
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LaidOffDrone
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10-22-09 12:24 PM
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This mill will never run again. (-:
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stlwkr
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10-22-09 11:45 AM
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Insider: The bottom fell out of the steel market around this time last year, who was President? In fact the steel production had dropped to just 40% of capacity by the end of 2008. I worked at Mingo and received my WARN notice before the end of the year a month before King George was run out of DC. Steel production has increased from 40% to 61.7% since then, not enough yet, but it is improving. Severstal had the misfortune of buying Warren and Wheeling just before the bottom fell out. I don't think Severstal intentionally bought Warren or Wheeling to shut them down, there just is not a market. I see these arguments, we made the best steel in Warren why aren't they running our mill. I hear the exact same thing in Mingo, it's nice you all have pride in your operation but face facts Severstal is running what they think are their most profitable operations. It's what you call Capitalism and it seems to me the Russians were pretty good students.
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suecless
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10-22-09 11:45 AM
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Change the tariff tax for imports and you will change the entire u.s economy.
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accstud
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10-22-09 11:39 AM
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Dont forget, the reason why the started the shutdown was to do work on the blast furnace. When the orders dropped then they decided to not start back up. Interesting that someone would be able to get numbers since the company never has shared costs between the locations.
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hcane5
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10-22-09 10:52 AM
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The fact of the matter is that Warren has historically been able to weather the storm of difficult economic times due to their specialty steels. No other Severstal North American facility has had any degree of success producing the grades of steel [alloy, high carbon, high strength to name a few] nor the quality of steel that comes from this facility. The Jacobsen survey clearly supports this statement. I must challenge Columbus on the erroneous figures that were thrown out in his/her comments and ask for the basis of this data. The one correct comment was the fact that the Warren facility did make a lot of money for Severstal, particularly in the 3rd quarter of last year. It was an amount more than the Columbus and Dearborn plants made and possibly Sparrows Point even though all facilities produce flat rolled steel. I wonder why "lowly" Warren was able to earn more than such a state of the art facility as Columbus when according to his/her comments money was so easily
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obvious
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10-22-09 10:02 AM
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Ok, What is so hard about this? No one wants to run an inefficient dinosaur. Warren is an inefficient dinosaur. No one wants to start back up a Union plant. The only people who want a union plant is the union. (see comment about inefficient dinosaurs and then add the word expensive) Severstal 'let go of' the guy who bought Warren. Because buying Warren was a bad idea. Severstal won't be able to sell it to anyone who can actually afford it without sweetening the deal. Yes Warren has had prospective buyers, not prospective buyers that could afford to buy it, make it run efficiently, cater to the union, fix the problems and modernize it. Not without giving up their efficient plant or plants in the deal. BTW, The steel industry isn't high profile enough for Obamessiah to 'save'.
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jmill46
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10-22-09 9:52 AM
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Stlwkr you are right. If the capacity isn't where it was over a year ago, and prices aren't where they were, how do you expect to operate. Currently; demand has fallen,and prices are falling again for November and December,and have always been slow months for the steel industry. Letson should know this, nothing has changed since he left the steel industry. They mean well, but you just can't process air through their operations.
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accstud
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10-22-09 9:46 AM
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Stwkr, that is why this whole Russian deal does not make sense. Warren out ran Dearborn by a large margin in efficiency, customer service, and product line. I can understand Columbus running with a EAF, Sparrows because of the tin product that is booming right now. Dearborn has wanted to do Warren mixes for years and could never figure it out. It just so happens that the corporate is at that plant, with their family working in that mill, and they are not going to put their family out on the streets.
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notpc4sure
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10-22-09 9:38 AM
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At one time Republic had 5200 employees, of course those days are gone..Now, the workers have to band together,come up with a plan that Severstal couldn't pass up. Maybe an independent union, something better than Dearborn,Sparrows Point or Mississippi,beat the competition if that's even possible. You can force Severstal to either run it or sell it or just ride it out.
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insider
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10-22-09 9:34 AM
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Instead of sending a letter to the head of Severstal, these local officials should be writing to the head of their party, the one and only Obama-the-Great and tell him to reverse his idiotic tax and spend policies. Can't they see that our Nobel Peace Prize winning Leader should stop worrying about socializing our medical system, our auto industry, and the banks, and be more concerned with creating an economic climate where industry and commerce can do what they do best...make profits and provide jobs. If Obama wants to print money to pay people to not work, we are going to wind up with a nation of non-workers. Idle people don't consume a lot of steel!
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stlwkr
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10-22-09 9:11 AM
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Last year at this time the steel industry was producing at 88% of capacity. Last week the industry was at 61.7%. You can't make steel if there are no orders. If you were Severstal you would be operating the most efficient plants. Obviously Warren and Wheeling are the least efficient so they are not running. The plant in Columbus Mississippi has an EAF 1/2 the size of the one in Mingo Juntion and it produces more steel, which plant would you operate? You have a BF in Sparrows point that produces more steel than the one in Mingo and Warren combined which one are you going to operate.
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WCISteel
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10-22-09 8:48 AM
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Isn't it the truth that the Russians never plan to restart the Warren mill? If another company is willing to buy the plant and run it, why can't Severstal be forced into either selling it or operating it?
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JoeCool
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10-22-09 7:58 AM
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A letter from Tom Letson...that'll get some attention...they're in trouble now...
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OldManGrump2
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10-22-09 6:01 AM
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As if the Russian owners would listen to a Democrook or two or three???? The Warren plant may well never open again. The longer it's idle the more likely that will happen. The union should be on their knees trying to get that plant re-opened.
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XANADU440
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10-22-09 5:42 AM
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SNAKES
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BobCvengros
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10-22-09 1:39 AM
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Tom Letson: "If you dont vote for Obama you are a Racist", but its okay to keep buying Russian steel, even selling them our mills. Hey Tom, doesnt this make you a "racist hypocrite"?
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