Allegheny Technologies Inc. announced Thursday that it will idle two Pennsylvania facilities, in Midland and Gilpin, citing difficult market conditions for flat-rolled products. Nearly 600 employees will be affected.
“The actions announced today are the result of an extensive strategic review and analysis of the current and expected medium-term market conditions affecting our US Flat Rolled Products operations,” said Rich Harshman, the chairman, president and CEO of ATI in a statement. “These actions are designed to return the FRP segment to profitability as quickly as possible and execute our strategy for sustainable long-term profitable growth.”
The temporary plant shutdowns will affect stainless-steel melting and finishing operations in Midland plant and grain-oriented electrical steel operations in Gilpin. Company officials said the plants will not close permanently, but it won’t reopen until the flat rolled products division can return to profitability—potentially in the second half of 2016.
The Midland plant is expected to be idled in January, and by April for the Gilpin plant
The idling comes in the midst of a four-month-long lockout due to a labor dispute. More than 2,000 United Steelworkers at 12 ATI facilities have been locked out since August 15.