‘Gem’ of a facility in Warren should be able to get a buyer

RG Steel LLC’s plant in Warren has ceased operations in the wake of the company’s filing for Chapter 11 bankruptcy protection, but industry watchers are confident a buyer will be found because of the customer base that exists within a 100- to 150-mile radius.

While that certainly is encouraging news, we would hope nothing is left to chance. The permanent loss of more than 1,000 jobs will not only be a major blow to the city of Warren, but will send economic shock waves through the Mahoning Valley.

Chris Davis of Steel Business Briefing, a trade publication about the industry, told The Vindicator recently that the Warren plant, which has been producing steel at the Pine Street location since 1912 and has had a series of owners including Republic Steel, LTV, WCI, and Severstal, is viewed by individuals in the market as a “gem of a facility,” compared to other plants owned by RG Steel.

Company officials appear confident that the plant won’t be out of commission long, but there’s no harm in local officials getting involved in the search for a new owner.

Indeed, the state of Ohio has been in regular contact with management and labor since the notice of closure was issued.

“We are an active participant in supporting the plant’s future and supporting the workforce,” said Kristi Tanner, managing director for manufacturing at JobsOhio, the private, nonprofit corporation formed by Gov. John Kasich and the General Assembly to lead Ohio’s job-creation efforts. “We’ve already been working with the union and RG Steel on what we call rapid response assistance for laid off workers and will continue.”

Tanner described the relationship as a “good partnership” and said JobsOhio will do whatever it can to support the workers.

The state has also reached out to area legislators to keep them in the loop.

As for a potential buyer, JobsOhio stands ready to help in any way it can, said Tanner, but is leaving it up to RG Steel to determine the future of the plant.

A state aid package could be available if a potential buyer were interested in discussing economic incentives, the managing director added.

Gov. Kasich has spoken to John Goodwin, RG Steel’s chief executive officer, while state officials have been in contact with management and labor on a regular basis.

Worker retraining

Meanwhile, U.S. Rep. Tim Ryan of Niles, D-17th, and U.S. Sen. Sherrod Brown, D-Ohio, are working with the labor department to secure funding for retraining the laid off employees not only in Warren but RG Steel’s five other facilities. The company has four in Ohio and two in West Virginia.

With such a concentration of effort on the state and national levels, local government and economic development officials should determine what can be done by the Valley to ensure that the Warren plant is restarted in short order.

This region can make a strong case for the reopening of the plant, not only because of the experienced workforce, but also because of the revival of the steel industry. The investment of $700 million by V&M Star in two state-of-the-art plants along Route 422 in the Youngstown-Girard corridor is significant and speaks volumes about the business climate in the Valley.