Gerdau Ameristeel Corporation announced Friday that it has reached an agreement with the United Steel Workers (USW) regarding the suspension of
production at the company's steel mill located in Sand Springs, Oklahoma. As per the agreement, the mill will be closed over the coming weeks.
An orderly wind-down of
production at the mill is anticipated over the next several weeks. Gerdau Ameristeel has assured customers that service will be uninterrupted and will be provided by the company's extensive network of mills in
North America.
On June 8, 2009 the company announced that it would enter into discussions with the USW regarding the potential closure of the mill. The company says it continues to investigate alternatives for modernization of the Sand Springs mill and the resumption of
production to meet future market demand. Discussions with state and local government officials regarding potential economic incentives are ongoing. However, the firm estimates that even if an agreement is reached regarding these economic incentives, the mill will be idled for at least 24 months while required capital improvements are completed.