GRAND RAPIDS, Minn., Nov. 18, 2015 /PRNewswire/ -- Magnetation LLC (Magnetation) announced today that it may implement a temporary production curtailment at its Plant 2 facility located at 27968 County Road 10, Bovey MN 55709. If necessary, any production curtailment would occur on or after January 31, 2016.
The announcement initiates compliance with the U.S. Department of Labor's Worker Adjustment and Retraining Notification (WARN) Act by notifying local officials and the International Union of Operating Engineers Local 49 of production curtailments and employee reductions. WARN Act notification is required 60 days in advance under certain circumstances when there is a potential for layoffs of more than 50 employees for a period in excess of six months.
"While any operating curtailment is unfortunate, we must balance our current production with our customers' needs to sustain our business in these challenging markets. In response to this market uncertainty, we must acknowledge that there is a potential for curtailments and layoffs. As a result, we are communicating the proper notifications to our employees and the community," said Larry Lehtinen, CEO of Magnetation. "At this time, there is no way to know how long this potential curtailment may last, but we are hopeful that Plant 2 production would resume in 2016. Some employees may have opportunities within other areas of Magnetation. We will be working closely with the appropriate governmental agencies to assist any affected employees who would be laid off if this operating curtailment is enacted."
Magnetation LLC is a joint venture between Magnetation, Inc. (50.1% owner) and AK Steel Corporation (49.9% owner). Magnetation LLC recovers high-quality iron ore concentrate from previously abandoned iron ore waste stockpiles and tailings basins. Magnetation LLC owns three iron ore concentrate plants located in Keewatin, MN, Bovey, MN and Grand Rapids, MN, and an iron ore pellet plant in Reynolds, IN. Additional information about the company is available at www.magnetation.com.
This press release contains statements that are forward-looking in nature and relate to our expectations, beliefs and intentions. All statements other than statements of historical fact are statements that could be deemed to be forward-looking, including but not limited to statements about the expected impact and timeframe of the Plant 2 curtailment and our ability to continue to fulfill customer needs. These statements are subject to risks, uncertainties and assumptions that could cause outcomes to differ from our expectations, including but not limited to continued depression or further decreases to iron ore prices, changes in demand for our products or steel, unforeseen operational difficulties with or costs relating to our plants or third-party suppliers, negotiations with collective bargaining units, and other factors described in the reports and information provided to our investors. We assume no obligation and do not intend to update any such forward-looking statements.
Mike Twite, 1-218-259-3795, [email protected]
SOURCE Magnetation LLC