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Gerdau Ameristeel announces production suspension, mill closing
- June 9, 2009
- News Release
- Metals/Materials
Gerdau Ameristeel Corp. has announced that it is suspending production at its Sayreville, N.J., steel mill and closing its rolling mill in neighboring Perth Amboy, N.J. because of lower demand for its products resulting from the downturn in the economy. The company said these actions are expected to occur gradually over the next several months. The company indicated that it would restart operations at the Sayreville facility when business conditions warrant.
The company also is entering into discussions with the United Steel Workers regarding the potential closure of the its steel mill located in Sand Springs, Okla.
The company said it will continue to offer its full range of products to its customers throughout North America. Service to customers will be uninterrupted and will be provided by production from Gerdau Ameristeel's network of steel mills in the United States and Canada. The Sayreville facility will continue to carry a full range of products in inventory available for shipment or customer pickup until production resumes.
Mario Longhi, president and CEO of Gerdau Ameristeel commented: "This was a very difficult decision that came after careful analysis and review of the marketplace, our production capabilities, and the most cost effective alternatives to meet the current and future needs of our customers throughout North America during this unprecedented economic downturn. These actions follow a series of steps the company has taken over the last nine months to reduce its costs. We understand the impact that these decisions will have on the lives of our employees and our communities, but unfortunately market conditions mandated that these actions be taken at this time. The company will make every effort to help displaced employees through this time of transition."
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The Fabricator is North America's leading magazine for the metal forming and fabricating industry. The magazine delivers the news, technical articles, and case histories that enable fabricators to do their jobs more efficiently. The Fabricator has served the industry since 1970.
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