EVRAZ plc (OTCMKTS:EVRZF) (LON:EVR), one of the largest vertically integrated steel and mining company worldwide, announced that its subsidiary in North America will stop operations of its steel mill in Claymont, Delaware due to weak market demand and high volume of imports.
EVRAZ steel mill shutdown
According to the company, its 375 employees at Claymont steel mill will complete processing and shipping of its existing products and will prepare the shutdown of its operations over the next two months. The employees will be out of work until EVRAZ plc (OTCMKTS:EVRZF) (LON:EVR) decides to reopen the steel mill. The company said it will restart operations once market conditions improve.
EVRAZ plc (OTCMKTS:EVRZF) (LON:EVR) assured investors that the closure of Claymont steel mill will have no adverse financial impact on its operations in North America. According to the company, its facilities in Portland, Oregon and Regina, Saskatchewan will serve the customers of Claymont steel mill.
John Zanieski on steel mill shutdown
In a statement, John Zanieski, executive vice president of Flat Products and Recycling at EVRAZ plc (OTCMKTS:EVRZF) (LON:EVR), said, “We appreciate our employees’ efforts to operate EVRAZ Claymont as efficiently as possible. Unfortunately, market conditions continue to be challenging and low market visibility makes it difficult to foresee when positive changes will occur.”
The company issued a Worker Adjustment and Retraining Notification (WARN) to all of its employees at the Claymont steel mill except a small crew who will be responsible for maintaining the site.
“We value the support we have received from the Governor, the state of Delaware and the community of Claymont over the years and appreciate their continued support during this challenging time,” added Zanieski.
Delaware Governor disappointed with the shutdown
On the other hand, the Delaware Governor’s Office issued a statement that Gov. Jack Markell was disappointed with the suspension of the operations of the Claymont steel mill. Markel’s communications director, Cathy Rossi, saidThe global steel industry remains very challenging, and DEDO was told that the facility is losing money as it seeks to compete with imports from China.”
She added that the Governor will continue to work with EVRAZ plc (OTCMKTS:EVRZF) (LON:EVR) and Delaware Economic Development Office (DEDO) to seek an opportunity to reopen the plant.
The Claymont plant manufactures steel plate and customer plate products for industrial companies. In the first half of 2013, its total production volume was 171.5 thousand metric tons.