Several hundred workers, comprising about half of the total workforce at Severstal Steel in Warren, Ohio were told Thursday that they would be temporarily laid off starting as soon as the week of December 21.
Workers were told that production at the mill is being shut down due to the plunge in orders, with the hope of restarting operations by June 1 or sooner if possible.
The laid off workers include 500 union members and 100 salaried employees. However, the company did not want to confirm any official numbers to press, saying that the numbers could change. Plant officials say that they hope the workers can return "in the next few months."
Severstal currently employs about 1,200 workers at its Warren, Ohio works. The plant, which produces flat rolled steel mainly used by the auto industry, has cut production significantly in recent months, with the mill's blast furnace shut down for repairs in October and never restarted due to the drop in orders. Workers were kept on the job, though, to perform maintenance and attend training.
The Warren works, formerly WCI Steel, was purchased by Russia-based Severstal in July and is a key part of the company's North American operations.