After evaluation of a comprehensive proposal submitted to US steelmaker Gerdau Ameristeel by the State of Oklahoma and City of Sand Springs aimed at maintaining steel production at the company's steel mill in Sand Springs, Oklahoma, Gerdau Ameristeel has decided to continue the idling of its Sand Springs steel mill for the foreseeable future, a company press release said.
Commenting on the issue, Terry Sutter, vice president and chief operating officer of Gerdau Ameristeel, said, "We commend them [the authorities] for their extraordinary efforts in trying to find a workable solution to a very difficult problem. Unfortunately, due to a combination of ongoing weak market conditions, the company's need for a significantly more flexible workforce structure at the mill, and the significant capital investment required by the company, we have decided not to move forward."
Company executives met on Thursday, January 7, with representatives from the Oklahoma Treasury Department and Department of Commerce, as well as with local officials and members of the legislative delegation, to discuss the company's activities going forward. The company reiterated its willingness to reconsider the proposal at a future time if business conditions warrant.
Gerdau Ameristeel is the second largest mini-mill steel producer in North America, with an annual manufacturing capacity of approximately 12 million tons of finished steel products.