LTV Potential buyer still considers plant

The local coke plant has laid off about a third of its workers.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
WARREN -- One of three companies that toured LTV's coke plant in Warren continues to be interested in buying the plant, a union official said.
Bill Prejsnar, unit chairman for United Steelworkers of America Local 1375, said he couldn't provide more details other than that he was told this company is "really interested" in the plant.
Earlier agreement: LTV agreed earlier this month to keep the plant open until Dec. 28 to give potential buyers more time to make a deal. The company had wanted to close it immediately, but creditors and the union asked for an extension.
Mark Tomasch, an LTV spokesman, said he couldn't comment on the sale efforts.
Prejsnar said the company laid off 40 more workers last week, increasing the number of laid-off workers to 65. The plant has about 180 hourly workers.
Prejsnar said he doesn't expect any more layoffs until the plant's fate is decided. Operating at the current staffing level will be difficult, especially if something goes wrong with the equipment, he said.
"I don't know if we can run like this for very long," he said.
The plant is still producing coke but at reduced levels. Coke is used in steel-making operations. Creditors and the union asked for the plant to be placed on low production, rather than closed, because coke plants suffer substantial damage when they are shut down.
Fate of union pact: Prejsnar said bargaining is continuing between the union and LTV over LTV's request to cancel the union labor contract. A hearing is scheduled in U.S. Bankruptcy Court Wednesday.
Prejsnar said he isn't sure how the talks might affect the coke plant workers.
"We've been promised that we haven't been forgotten," he said.
Union officials have said the talks will involve union members who will continue to work at LTV. The company wants to close its steel-making operations but maintain its Copperweld and tubular division plants. It eventually wants to sell these two units.
The tubular products division includes a plant and an office in Youngstown, which employ about 120 people.
Tomasch said he couldn't comment on the talks with the union.
Retirees will continue receiving health care coverage and pensions until the contract is canceled. The federal Pension Benefit Guarantee Corp. has said it will take over pensions, but there may be no provisions for continuing health care coverage.
LTV has received permission to idle its steel mills in Cleveland, Indiana and Illinois, saying it doesn't have any customers and is running out of money. Under the agreement reached in bankruptcy court, it will keep the Cleveland and Indiana mills idling with skeleton crews until at least Feb. 28 and the Illinois mill idling for nine months.
shilling@vindy.com