Severstal Warren is set to lay off more employees

By Don Shilling

Local workers had been processing steel slabs made at another mill.

WARREN — Layoffs are growing at a Warren steel mill that shut down its steel-making operations in October.

Some departments at Severstal Warren that had been processing steel finished their work Friday, which means workers there are no longer needed, said Mike Rounsley, benefits representative for United Steelworkers of America Local 1375.

He didn’t know the number of workers being laid off, and Ed Machingo, local president, was not available to comment.

Workers were told in December that about 600 of the mill’s 1,050 hourly workers would be laid off at some point. They also were told the steel-making operations, which closed for repairs in the fall, would not be restarted until sometime in 2009, perhaps as late as June 1.

Mel Baggett, Severstal vice president of human resources, said he didn’t want to give weekly updates on layoff numbers. He would say only that a significant number of people had already been laid off and that the company would continue to align its production to demand.

He emphasized, however, that Severstal intends to restart steel production at the mill, which used to be known as WCI Steel.

Steelmakers nationwide have been limiting production because of the downturn in the auto industry and a drop in demand for a variety of consumer goods.

In recent weeks, Severstal had been shipping steel slabs to the Warren mill for processing, Rounsley said. The slabs had been produced at a Severstal mill still making steel.

While the rolling of slabs in Warren has ended, some finishing and galvanizing work remains, Rounsley said. Maintenance workers also remain on the job, he said.

Severstal has been making steel at a reduced level at a mill in Michigan but has shut down steel production at mills in Maryland and West Virginia, as well as Warren.

Severstal is a Russian-based company that has its North American headquarters in Dearborn, Mich. It bought the Warren mill this past July as part of its efforts to expand in North America. The mill had been owned by a group of lenders who brought the company out of bankruptcy court protection.

shilling@vindy.com