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Saving Century Jobs

Local officials optimistic when execs meet governor today

January 10, 2009
By JESS MANCINI

RAVENSWOOD - Officials are relying on the efforts to keep Century Aluminum in Ravenswood from closing.

''Call me an optimistic whatever,'' said Ravenswood Mayor Lucy Harbert.

Century Aluminum, which employs nearly 700 people, on Dec. 17 said it was shutting down one of the four pot lines at the plant but warned the facility could close in 60 days depending on the price of aluminum and production costs were cut 20 percent by February.

Gov. Joe Manchin and local officials today are again meeting with utility, labor and company representatives, this time with Chief Executive Officer Logan Kruger and Vice President and Chief Operating Officer Wayne Hale to talk about ways to keep the plant open. An earlier meeting was held on Dec. 23 that also included Appalachian Power as electrical usage is a major expense at the plant.

One way is to give Century Aluminum tax relief or defer taxes until later, said Delegate Mitch Carmichael, R-Jackson.

''The state should do whatever it can to make sure this critical manufacturing facility stays open in our county,'' said Carmichael, who will be at the meeting.

The plant, because it is an existing facility, isn't eligible for the breaks West Virginia would offer a new company to locate here, he said.

''If this was a new company, we would open up the state treasury,'' Carmichael said.

Carmichael said he will encourage his colleagues in the Legislature to approve relief such as breaks on personal property inventory taxes, business franchise taxes and corporate net income taxes.

''These taxes should be looked at,'' he said.

Company and other officials may be available to the press after the meeting at the community building in Ravenswood, Manchin spokesman Matt Turner said.

The governor also is optimistic, but there's many factors and parties who have to come together, Turner said. The state can't solve market problems, he said.

''We're being realistic on this, too,'' he said.

Solutions can't be for the short term, Turner said. Manchin's aim is long-term plant viability and any plan won't be a bailout, Turner said.

''He expects all parties to come to the table with something,'' Turner said.

The plant's closure would be devastating for the city, county, the region and the state, said Harbert, who will be in today's meeting.

''Hopefully there's something we can do,'' Harbert said.

Mark Whitley, director of the Economic Development Authority in Roane County, Jackson County's neighbor to the east, agrees and has his eyes and ears on what's happening at the plant. The repercussions will be regionwide if Century Aluminum is shuttered, he said.

Residents across the counties work at the plant while businesses in the region are suppliers and contractors there, he said.

''We're really interdependent on each other,'' Whitley said.

According to Whitley, it costs about $34 million a month to run the plant, which includes electrical costs of $9 million, labor costs of $5 million and raw material costs of $9 million. Moreover, the price of aluminum has dropped more than half to about 80 cents a pound, he said.

''It's really a challenging economy we're in right now,'' Whitley said.

Today's meeting is intended to be more intimate than the December meeting, Turner said.

''This is going to be a private meeting,'' Century Aluminum spokesman Mike Dildine said Friday.

A statement may be issued by the company at the conclusion of the meeting, he said.

 
 

 

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Article Photos

AP File Photo
Gov. Joe Manchin will meet with Century Aluminum executives today in efforts to keep its Ravenswood plant from closing. Century employs nearly 700 people in Ravenswood.