State legislator encouraged by Severstal’s plan

By Don Shilling

WARREN — A local state legislator said he is encouraged that Severstal executives have an action plan ready if they decide to restart their steel mill here.

The executives didn’t give a timetable for reopening the mill during a meeting with state legislators Thursday, but they demonstrated continued interest in the operation, said state Rep. Tom Letson of Warren, D-64th.

“I was pleased with almost everything I heard in terms of their commitment,” Letson said after the meeting.

He said the executives talked about how mill operations would be restarted and how they are prepared to train workers who would be called back.

They also described how they spent $10 million last year to protect the lining of the blast furnace when it was idled. Letson said he was pleased to hear this because the blast furnace could not have been restarted without the investment.

Legislators called for the meeting because they have been on edge because of the lengthy shutdowns of Severstal mills in Ohio. In asking for the meeting, the legislators told Severstal that its workers and local communities would be best served by having the mills restarted.

Letson said, however, that the meeting was only to gather information. The legislators were not trying to bargain in place of the United Steelworkers of America, he said.

Bette Kovach, a spokeswoman for Severstal, said the Russian-based company remains committed to the North American market despite production reductions that were needed to match declining orders.

“We don’t know when the Warren mill will be restarted. It depends on market conditions and the sustainability of those market conditions,” she said.

The Warren mill, which used to be known as WCI Steel, has been idle since early this year. Steel- making operations were shut down in October 2008.

About 1,100 hourly and salaried workers are laid off.

Letson said executives reported that they could not predict when the Warren mill would be restarted. Severstal recently announced that it was restarting a cold-rolling mill in Yorkville, Ohio, this month.

Included in the meeting were Greg Echols, general manager of the Warren mill, and two other Severstal executives. The legislators included state Sen. Capri Cafaro of Liberty, D-32nd; Sen. Jason Wilson of Columbiana, R-30th; and Rep. John Domenick of Smithfield, D-95th.

shilling@vindy.com