MCDONALD Layoffs hit 32 at steelmaker

A $6 million project for a new furnace also has been delayed.
McDONALD -- McDonald Steel has laid off 32 workers because of slow orders.
This is the first time the company has laid off workers since it was formed in 1981 at the site of the former U.S. Steel McDonald Works.
"It's agonizing," said Bill Farragher, a company spokesman.
He said the company tried to cut operating costs but wasn't able to save enough money to avoid the layoffs, which amount to 20 percent of the company's 160 workers.
Company officials have spoken with all of McDonald Steel's customers, who are reporting that they are stuck with large inventories because they aren't getting orders from their customers.
McDonald Steel provides hot-rolled steel shapes for off-road equipment, such as mining, construction and railroad vehicles, and all of those industries are down, Farragher said.
Company officials hope the economy will recover soon, and workers will be able to return, he said.
The company has been operating just one of its two mills for the past month to save on electricity, natural gas and other costs, he said.
The slowdown in orders also has caused the company to postpone a $6 million project to install a new furnace.
Officials said in July that they were going to replace two inefficient furnaces, which were built about 75 years ago, with one new furnace. Officials said, however, that they have since learned that space constraints and the layout of the plant would not allow them to build just one furnace.
The plan now calls first for a new furnace for the 14-inch mill when funds are available, with a furnace for the eight-inch mill coming later.
McDonald Steel and two labor unions signed the first labor contract at the mill in June. The United Steelworkers of America and Teamsters now jointly represent the hourly workers.