Gerdau announced it will idle most operations at it mill in St. Paul, Minnesota, affecting around 222 of the 300 current employees.
According to local news reports, the flat steel plant will close its melt shop and rolling mill, although finishing processes will continue. Layoffs will reportedly begin starting in June, and continue through August.
The move does not appear to be a direct result of the Covid-19 pandemic, as employees were notified in March about the possibility of idling operations.
“The decision to idle part of an operation is never taken lightly, and we regret the impact this will have on our St. Paul workforce,” said Chia Yuan Wang, Gerdau's president of Long Steel North America, in a statement. “But we believe this is a necessary step to support [Gerdau's] overall competitiveness and sustainability.”