More Good News

[Towntalk]

OAO Severstal Warren Inc. and its neighbor across the street, ArcelorMittal Warren, may be showing signs of life after being idled for nearly a year.

The United Steelworkers Association International in Cleveland said that both plants are in the process of calling back workers for limited operations.

Laid off Severstal crane operator, Michael Riynock, 33, said Tuesday he hadn't heard the rumors Tuesday, or when or even if all workers would be recalled. But he did say he'd heard about some work with the blast furnace.

"We're optimistic," he said. "We're hoping to go back to work. I don't know when ... or the time frame."

OAO Severstal, which makes integrated flat rolled steel, is looking at a restart in early March or possibly April. Some maintenance workers are due back Feb. 28, according to a union spokesperson. Sources said a small wave of workers have already been called back this week to prepare the Severstal blast furnace.

The plant was purchased from WCI in 2008 by the Russian steelmaker but was shut down last year when the U.S. economy collapsed, and the steel industry as a whole entered a major slowdown. More than 1,000 workers were laid off when the plant shut down. How many workers will be part of the callback is unclear at this point.

When he was laid off in December 2008, the average age of a Severstal worker was 54 or 55, Riynock said, and many had 30 or more years of experience. While workers are laid off, he said, they are technically still employed by Severstal and can be called back, Riynock said.

Riynock worked at Severstal for 14 years before being laid off. He said workers have always believed they would be called back, it is just a matter of when and where.

"This whole industry goes up and down," said Riynock. "I think our plant's always made money. They'd be fools not to."

Coke manufacturer ArcelorMittal is also calling back workers as early as next week according to the USWA. However when reached for comment, corporate spokesperson Adam Warrington said "there were no updates at this time." The plant employs 180 workers.

The World Steel Association said in their October report that they forecast steel demand to grow by 9.2 percent in 2010 as the world economy rebounds. Shares of ArcelorMittal reportedly rose 89 percent last year.

When reached for comment Tuesday, OAO Severstal spokeswoman Betty Kovach said that the status of the Severstal plant is unchanged, neither confirming or denying the restart.

The rumors come less than one month after a U.S. International Trade Commission ruling that said there was a need to impose higher tariffs on Chinese-made steel pipe.

[Towntalk]

Warren's two closed steel mills are starting to call back employees and are slated to resume full operations this year.