Gerdau Ameristeel Corp. announced Monday that it will idle production at its Sayreville, New Jersey steel mill, while closing down its wire rod rolling mill adjacent to Perth Amboy, New Jersey over the next several months, due to lower steel demand resulting from the weakened economy.
The company indicated in a press release that the Sayreville facility would restart and resume production once demand picks up. In the meantime, the Sayreville facility will continue to carry a full range of steel products in inventory which will be available for shipment or customer pickup.
Furthermore, Gerdau Ameristeel is entering discussions with the United Steel Workers regarding the potential closure of the its steel mill located in Sand Springs, Oklahoma.
Addressing the future of its New Jersey mills, Mario Longhi, President and CEO of Gerdau Ameristeel, commented, "This was a very difficult decision that came after careful analysis and review of the marketplace, our production capabilities, and the most cost effective alternatives to meet the current and future needs of our customers throughout North America during this unprecedented economic downturn. These actions follow a series of steps the company has taken over the last nine months to reduce its costs."
The company will continue to offer its full range of products to its customers throughout North America through production from its network of steel mills in the United States and Canada.