West Chester, Ohio-based flat rolled steel producer AK Steel has announced that it is temporarily idling its Mansfield, Ohio operations, and most of its Ashland, Kentucky operations. These operations will remain idled until early- to mid-January, the company said.
In a press release, the company attributed the "recent unanticipated and major downturn in the economy" as causing "sharply lower demand" for some of its products. The company also said that it continues to evaluate all of its operations in light of the economic downturn, and will be prepared to adjust its operations to keep in step with demand. This would include restarting the idled operations sooner "if warranted by significantly improved business conditions."
AK's Mansfield Works currently employs 365 employees, producing stainless flat rolled steel, used primarily in automotive exhaust systems. Steel production and shipping temporarily ceased at the Mansfield Works earlier this week. A small number of hourly and salaried workers will continue to maintain operations in anticipation of a re-start.
The Ashland Works produces carbon flat rolled steel, currently employing 1,100 workers. About 275 employees at Ashland Works work at the company's coke plant, which the company said will continue to operate, but at a reduced level. Ashland's blast furnace, steelmaking, casting and coating operations will be idled later this month. As in Mansfield, a small number of employees will continue to maintain the idled operations. The company said Ashland's blast furnace would be maintained in "hot-idle" status.
"We remain hopeful that we will be able to return our dedicated and hard-working employees to their jobs as swiftly as possible," said James L. Wainscott, chairman, president and CEO. "Of course, that depends entirely on credit availability and consumer confidence, which are at the heart of this serious economic downturn."
Another US steelmaker, Steel of West Virginia, recently scaled back operations in light of week demand, temporarily laying off 52 workers at its Huntington, West Virginia plant this week. The plant is located about 15 miles away from AK's Ashland Works.