Magnetation LLC announced Wednesday that it may implement a temporary production curtailment at its Plant 2 facility in Bovey, Minnesota. If necessary, any production curtailment would occur on or after January 31, 2016.
The announcement initiates compliance with the
US Department of Labor's Worker Adjustment and Retraining Notification (WARN) Act by notifying local officials and the International Union of Operating Engineers Local 49 of production curtailments and employee reductions.
"While any operating curtailment is unfortunate, we must balance our current production with our customers' needs to sustain our business in these challenging markets. In response to this market uncertainty, we must acknowledge that there is a potential for curtailments and layoffs. As a result, we are communicating the proper notifications to our employees and the community," said Larry Lehtinen, CEO of Magnetation. "At this time, there is no way to know how long this potential curtailment may last, but we are hopeful that Plant 2 production would resume in 2016. Some employees may have opportunities within other areas of Magnetation. We will be working closely with the appropriate governmental agencies to assist any affected employees who would be laid off if this operating curtailment is enacted."