Unforeseen business conditions lead to Warren Steel closure

By Kalea Hall

khall@vindy.com

YOUNGSTOWN

Warren Steel Holdings’ permanent closure is due to “unforeseen business conditions,” the company says.

“The rapid deterioration of business conditions as we entered the first quarter, coupled with the loss of significant customer demand and the lack of financing, are among the unforeseen business circumstances that led to the decision to close the plant,” the company said in a statement sent to The Vindicator on Monday.

The Vindicator exclusively reported Saturday that the plant would close after a United Steel Workers representative was alerted of the permanent closure.

In late November, the plant, located at 4000 Mahoning Ave. NW in Warren, went on a temporary shutdown because of the business conditions at that time. About 150 employees were affected then.

Warren Steel, affiliated with Optima Speciality Steel based in Miami, engineers products used in a variety of industries, including aerospace, mining, construction, automotive and agriculture.

The steel industry has taken a hit from the effects of a strong dollar, weak global demand and a buildup of inventory.

A letter sent to employees by John Scheel, vice president of Warren Steel, was recently obtained by The Vindicator. It announced the termination of all employees.

Scheel cited a few reasons for the closure, including rapidly deteriorating economic conditions, loss of continued financing and loss of customer demand.

“We extend our sincere regrets with thanks for all of your contributions to our organization,” Scheel wrote in the letter sent Jan. 9.

The company did not go into detail about how many employees were terminated, nor did it state when the closure will be finalized.