LTV Closing Mill; 900 Workers Affected
Published: Apr. 11, 2001 at 8:16 PM EDT|Updated: Mar. 27, 2006 at 8:08 PM EST
CLEVELAND - LTV Corp. announced Wednesday that it will close one of its two Cleveland mills, eliminating 800 hourly and 100 salaried employees, Hometeam News reports.
It's part of the company's restructuring plan that's intended to restore its integrated steel operations to viability.
The company told officials of the United Steelworkers of America that it's permanently closing the Direct Hot Charge Complex and the associated C-1 blast furnace, located in the Flats.
"The hot rolled steel produced by the DHCC carries our lowest selling prices and cannot compete in the marketplace," LTV executive vice president and chief operating office John Turner said.
Turner said that LTV could not justify making investments in facilities that do not generate a positive return.
Closure of the facilities on Cleveland's west side will result in cost savings of $700 million over the next five years, according to the company.
LTV said that it is prepared to meet with the USWA concerning the effects of the intended shutdown. The company also said that approximately half of the affected employees would be eligible to retire, and that the other affected employees would be eligible for job opportunities at other LTV Steel facilities.
"The future of our company, employees, retirees and communities demands that we make the changes necessary to break out of the exhausting cycle of crisis and failure which nearly caused the permanent closure of our company less than four months ago," LTV chairman and chief executive officer William Bricker said.
"LTV has come a long way since Dec. 27, when we faced the shutdown of an entire company and economic devastation for over 100,000 people," Bricker added. "As a result of the heroic efforts of our employees, our communities, the steelworkers and our elected representatives, we now have the financial means to restructure LTV Steel and create a stable, profitable and successful company."
Many LTV workers with whom Hometeam News spoke, however, said that they were caught off-guard by the announcement. They said that they had not yet even received the videotape that the company was supposed to send to all of its workers by Wednesday -- the tape that was supposed to detail LTV's restructuring plan.
Now, 900 workers are left wondering about their future.
