WARREN Union leader objects to way CSC is mothballing plant

A CSC spokesman said the banks own the mill and are directing the mothballing process.
By CYNTHIA VINARSKY
VINDICATOR BUSINESS WRITER
WARREN -- A CSC Ltd. union leader says the company is doing an incomplete job of mothballing the massive steel bar plant and he'll ask a federal bankruptcy judge to order changes.
John Kubilis, president of Steelworkers Local 2243, said CSC has already begun preparing equipment in idled sections of the plant for long-term storage.
He said workers have advised him that some facets of an equipment storage plan approved by U.S. Bankruptcy Court in Youngstown are not being followed.
"They're mothballing, but they're not doing it right," he said. "If it's done properly, a buyer may be able to get that plant operating in 10 days. If it's not done right, it could take two to three weeks to restart."
CSC's Response: But Don Caiazza, vice president of commercial sales and a CSC spokesman, said the banks own the mill and the company has no choice but to follow the banks' instructions for the mothballing process.
"It's their facility. It's their money," he said. "The banks will only spend what they feel they need to spend on that activity."
He said the lenders hired a consulting firm to determine what steps should be taken to mothball the plant, and as far as he knows the company is following that plan. Mothballing procedures include application of oils and lubricants and periodic turning or moving of equipment.
Kubilis said he has learned that the storage measures planned for the mill's new continuous caster, the 12-inch mill and the high-speed grinders in the conditioning department are not being performed.
He said Local 2243 leaders will meet with union attorneys Wednesday, and they plan to ask Judge William T. Bodoh to order the company to perform a more complete mothballing process.
Seeking a buyer: The company, Trumbull County's fourth largest employer, with 1,200 employees, has been operating under Chapter 11 bankruptcy protection since Jan. 12 and is seeking a buyer to keep the plant operating.
Officials have said that several prospective buyers have toured the plant and at least two have expressed interest in bidding on the company in a bankruptcy court auction. CSC employees have also hired a consultant, Locker Associates of New York, to investigate the feasibility of a worker buyout.
Only about 130 hourly and 71 salaried employees were working this week, processing stockpiled inventory and shipping it out for sale. Caiazza estimated that about 49 salaried and 100 hourly workers are scheduled to report Monday.
The company has been operating on a day-by-day basis since March 9, waiting for lenders to approve a two-week budget that would have allowed workers to process about 3,800 tons of remaining steel inventory.
Caiazza said officials still hadn't received word on the request by late Friday. However, workers processed about 2,000 tons this week, and have about 1,800 tons of steel inventory left to process next week.