Sunday, January 11, 2009

Eramet To Idle US Furnaces

The French ferroalloy producer, Eramet, has announced job losses of 110 employees at its Eramet Marietta facility in Ohio.

This follows a reduction in market demand, the company said, in the light of a continuing global economic downturn and what has been called the worst steel market in recent history.

The company's Special Products Division will be 'indefinitely idled' in March 2009, a silicomanganese furnace will be idled for 60 days in early March and one of its two ferromanganese furnaces for 90 days in May.

Pending market recovery and final funding approval from corporate headquarters in Paris, the company said it plans to rebuild the ferromanganese furnace to improve operational efficiency and environmental performance during its idling.

Employees who meet set company service criteria are being offered a voluntary termination package to enhance basic severance and layoff allowances.

"It is always difficult to make choices that have such an impact on the lives of our employees; however, after evaluating many alternatives, under the circumstances of such a dismal economy this was the best course of action to ensure the long-term viability of Eramet Marietta," CEO Frank Bjorklund said in a statement.

Eramet spokeswoman Joy Frank-Collins said the company's biggest customers include AK Steel, U.S. Steel, and Arcelor Mittal, steel companies that have been idling furnaces and laying off employees since the fourth quarter of 2007.

"We also provide metal and manganese that goes into steel for the automotive industry. That has certainly had an effect. It's almost a trickle down situation," Frank-Collins said.


Source: Marietta Register

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