WARREN WCI announces idling of silicon electrical line

The company and union discuss the future of the line's 50 workers.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
WARREN -- WCI Steel is idling what used to be one of its most profitable production lines after many of its customers moved out of the country.
The silicon electrical line, which produces steel for use in motors, generators and transformers, will be closed Jan. 31.
The line has about 50 workers. Layoffs are possible, but uncertain, said Tim Roberts, a company spokesman.
WCI, which has 1,800 hourly and salaried workers, and the United Steelworkers of America Local 1375 will discuss the silicon jobs as part of larger negotiations on the restructuring of mill operations, he said.
Mike Rubicz, Local 1375 president, said the talks have been difficult and haven't reached any conclusions. Other steelmakers have negotiated new contracts with Steelworkers that have included job cuts, but a more self-directed work force.
The Warren steelmaker said demand for silicon steel is down partly because customers have moved production to Mexico and Asia and so are using other suppliers.
Problems cited at rally
WCI used the silicon line as an example of the need to reform trade policies at a rally Nov. 7.
Pat Tatom, WCI executive vice president, told a crowd of WCI workers and supporters that they should pressure politicians to enforce trade policies and not allow countries that violate them to do business in this country. He added that the country needs to have tax and environmental policies that encourage companies to keep plants in this country.
Tatom said at the rally that the line was producing 5,000 tons of steel a month, half of what it used to produce.
Roberts said the line also has been hurt by the increasing use of cold-rolled laminate steel instead of silicon steel. WCI makes both types.
The silicon line was one of the mill's more profitable lines a couple of years ago, but recently has been losing money, Roberts said. The line has been inefficient to run because it is running at half of its capacity, he said.
Meant to be temporary
WCI isn't permanently shutting down the line, so production could be restarted later if conditions change. Roberts said the company doesn't expect that to happen in the near future, however.
He added that the company's order book is strong in other areas. Idling the silicon line will help the company devote its resources to other lines where products are more in demand, he said.
Rubicz said, however, that he would rather the company keep the silicon line going because it has been a key part of the company's business strategy. WCI has succeeded in creating a variety of smaller niche markets, and eliminating one of them could make it more difficult for the company, he said.
WCI filed for bankruptcy protection from creditors in September. It hopes to emerge from bankruptcy court as an ongoing company.
Besides talks with the union, negotiations on restructuring WCI's debt are continuing among the company, its lenders and parent company, New York-based Renco Group.
shilling@vindy.com