AK Steel's Middletown plant has authorized a 45-day maintenance shutdown which began March 20 as well as the termination or suspension of many AK Steel jobs.
One hundred employees were released due to the maintenance repairs, but they are likely to return once the restoration has been completed, said Scott Rich, president of the International Association of Machinists and Aerospace Workers Local Lodge 1943, the union for AK Steel employees.
"The outage has led to some temporary layoffs," Rich said. "Those employees should be recalled once we handle the repairs, but in the interim, the employees are laid off."
The Middletown employees have claimed recall rights, which mandate that laid-off employees remain eligible for re-hiring within two years. The recall rights also require the company to hire only previous workers, no new staff, Rich said.
The primary reason for the 45-day shutdown was to make significant repairs to the hearth furnace of the plant, AK Steel spokesman Alan McCoy said.
However, AK is not the only steel manufacturing company facing tough decsions like these, McCoy said.
"Across the country, steelmakers are collectively operating at 43 percent capacity," McCoy said. "It's a result of customers not buying steel. The demand for products is down (as) we are in a severe recession."
Rich said he viewed the decision to undergo extensive maintenance as strategic and would only benefit the company in the long-term.
"It is a good time to proceed with the repairs to the blast furnace," Rich said. "We aren't turning away any business during these tough times."
The stalling economy also was a significant factor in the decision to undergo lengthy maintenance procedures, McCoy said.
"The business level is not good," said McCoy, "these are slow economic times."
Rich said the objective of the shutdown was to make the best out of a slow business by protecting the longevity of the company in future years.
Modifications and repairs to the blast furnace have not occurred in 25 years, he said.
"We are grateful to protect the long-term future of the plant, and we are very happy to have adequate resources available during this slow time to do so," Rich said.
The money for the maintenance project has come from capital expense budgets as well as profit from years past, said Rich.
Rich said he is optimistic about the shutdown, despite economic woes.
"The Middletown plant is the flagship of the company," Rich said. "There is a lot in our plant that helps other plants, so, long-term, it's great news to ensure the company's future."
