Gerdau to Idle Rolling and Melting Operations at Jackson, Michigan Mill

SEATTLE (Scrap Monster): Gerdau- the largest producer of long steel in Latin America announced its decision to idle the rolling and melting operation at its special bar quality (SBQ) mill in Jackson, Michigan. The idling will commence during mid-April this year. Meantime, the processing and finishing facilities at the mill will continue its operations, as usual.

The company has already informed the employess about the layoff plan. Out of the 400 around employees, 140 will be laid off in mid-April, said Lindsey Erb, Manager, Communications and Public Affairs of Gerdau. Layoffs will be based on seniority and job qualifications. The company will extend all possible help to affected employees in getting through the transition process, he added.

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The orders from the Jackson mill facility will be moved to its other two special steel mills located in Monroe, Michigan, and Fort Smith, Arkansas.

Rodrigo Belloc, Gerdau Special Steel North America president stated that it was an incredibly difficult decision to make. However, it is unavoidable in order to ensure the overall sustainability of the business, he added.

This is the second major idling of steelmaking capacity in Michigan during recent times. Earlier in December last year, U.S. Steel had announced its decision to begin idling its blast furnace and other steelmaking operations at its Great Lakes facility starting April this year.