MARIETTA - The latest layoff announced in Washington County is also the largest since the start of the recent global economic turmoil: Eramet Marietta will cut 110 jobs from its workforce.
"The unfortunate situation here is that we need to make these moves, these workforce reductions, in order to ensure the long-term viability of the plant," said Eramet spokeswoman Joy Frank-Collins.
The cuts, which will begin in March, are among steps being taken by the company to "more accurately align production with market demand," according to a news release Eramet issued Thursday. The turbulent economy, automotive industry struggles and subsequent slowdown in the steel market have reduced demand for the plant's products, Frank-Collins said.
The company also plans to idle the Special Products division at the Ohio 7 plant indefinitely starting in early March. The silicomanganese furnace No. 1 will be idled for 60 days in March, and the ferromanganese furnace No. 12 will follow suit in May for a period of 90 days, the release says.
By the time all the adjustments are made, in the third quarter of 2009, the plant's 362-person workforce will have shrunk by 110 jobs.
It's too early to say if there will be cuts beyond that, Frank-Collins said.
"We don't know. If the market doesn't come back the way that we anticipate, we'll have to reevaluate the situation and make decisions then," she said.
Calls to union officials representing Eramet employees were not returned Thursday night.
More than 200 layoffs have been announced in Washington County in the last week.
County Commissioner Sam Cook said the last time he could remember so much bad employment news coming so rapidly was in the wake of the Sept. 11 terrorist attacks in 2001.
"After the 9-11 attacks we had a period of time - about two years - when our unemployment figures shot up and we had about four plants close down," he said. "We came back from that OK, and I'm confident when things straighten up nationally we'll be OK again."
It has not been determined which jobs at Eramet will be cut but the reduction will be split between 80 hourly and 30 salaried positions, Frank-Collins said. Eligible employees will be offered a voluntary termination package that would enhance the basic severance/layoff allowance offered to all impacted employees.
Eramet Marietta CEO Frank Bjorklund and John Willoughby, director of human resources and public affairs, were meeting with employees Thursday and today.
"It is always difficult to make choices that have such an impact on the lives of our employees; however, after evaluating many alternatives, under the circumstances of such a dismal economy, this was the best course of action to take to ensure the long-term viability of Eramet Marietta," Bjorklund said in Thursday's release.
Prior to the decision to cut jobs, contract work at the plant was reduced as part of a cost-saving plan, Frank-Collins said. That toll on area contractors is yet another facet of the local impact.
Current conditions may not derail the $150 million "vision plan" announced in August to improve the company's operational and environmental performance, Frank-Collins said. In fact, some of the improvements may be started while furnace No. 12 is down, she said.
"Pending anticipated market recovery and final approvals, it's our desire that while that furnace is idling, we will proceed with a rebuild project on that furnace that is aimed at vastly improving the furnace's operational/environmental performance," Frank-Collins said.
"It's an opportunity to make some lemonade out of this situation," she said.
According to the company's Web site, www.emspecialproducts.com, the plant is the only producer of manganese ferroalloys in the United States and Canada. Among its main customers are steel companies United States Steel Corp., AK Steel and Arcelor-Mittal, Frank-Collins said.
"They take our product to make steel, and their steel is bought by the automotive industry," she said. "Anything that has to do with steel has to do with our products."
After steel prices reached all-time highs in 2008, the industry was hit hard by the economic downturn as the construction industries in North America and Europe weakened and automobile sales dropped. Stock in U.S. and AK Steel plunged, and by the end of the year, companies were making production cuts and layoffs and facing expectations of a continued slide in demand.
