TheCount
10-02-2019, 12:07 AM
Bayou Steel Group is shutting down its LaPlace steel mill, putting nearly 400 workers out of work as the ripple effects of the growing trade war between the U.S. and China put pressure on the domestic steel industry.
A manager for the 40-year-old plant, which is one of the largest employers in St. John the Baptist Parish, said in a letter to Parish President Natalie Robottom and state workforce officials on Monday that "unforeseen business circumstances" and a lack of financing would force the plant's owners to permanently close the plant by the end of November.
The move came as a shock to local officials, who said the closure came without warning. Parish spokeswoman Baileigh Rebowe said workers had no idea it was coming either.
"Many of them were not prepared," Rebowe said. "They’re devastated and didn’t know this going into work this morning."
The Louisiana Workforce Commission said it had received no warning of the closure and layoffs until Monday. The commission said it will deploy a mobile unit to the American Job Center Office on West Airline Highway in LaPlace on Tuesday to offer advice on job openings, retraining and other assistance that may be available to the plant's 376 workers.
The LaPlace plant, which first opened in 1979, specializes in turning scrap materials into products like rebar that can then be sold to builders and other customers. In recent months, sharp swings in the market for steel as well as scrap metal and other raw materials, coupled with uncertainty around trade with China, the world's largest steel market, has pressured many steelmakers.
The plant's private equity owners, Connecticut-based Black Diamond Capital Management, did not respond to requests for comment, nor did the plant's management.
Gov. John Bel Edwards blamed the closure on the Trump Administration's trade war with China, which began more than a year ago with tariffs on imported steel.
"While Bayou Steel has not given any specific reason for the closure, we know that this company, which uses recycled scrap metal that is largely imported, is particularly vulnerable to tariffs," Edwards said in a statement, adding that Louisiana is among the states most dependent on metals that have been hit by rising costs caused by tariffs.
https://www.nola.com/news/business/article_eb4bdb54-e3bf-11e9-a105-1fbf4a4b79a4.html
A manager for the 40-year-old plant, which is one of the largest employers in St. John the Baptist Parish, said in a letter to Parish President Natalie Robottom and state workforce officials on Monday that "unforeseen business circumstances" and a lack of financing would force the plant's owners to permanently close the plant by the end of November.
The move came as a shock to local officials, who said the closure came without warning. Parish spokeswoman Baileigh Rebowe said workers had no idea it was coming either.
"Many of them were not prepared," Rebowe said. "They’re devastated and didn’t know this going into work this morning."
The Louisiana Workforce Commission said it had received no warning of the closure and layoffs until Monday. The commission said it will deploy a mobile unit to the American Job Center Office on West Airline Highway in LaPlace on Tuesday to offer advice on job openings, retraining and other assistance that may be available to the plant's 376 workers.
The LaPlace plant, which first opened in 1979, specializes in turning scrap materials into products like rebar that can then be sold to builders and other customers. In recent months, sharp swings in the market for steel as well as scrap metal and other raw materials, coupled with uncertainty around trade with China, the world's largest steel market, has pressured many steelmakers.
The plant's private equity owners, Connecticut-based Black Diamond Capital Management, did not respond to requests for comment, nor did the plant's management.
Gov. John Bel Edwards blamed the closure on the Trump Administration's trade war with China, which began more than a year ago with tariffs on imported steel.
"While Bayou Steel has not given any specific reason for the closure, we know that this company, which uses recycled scrap metal that is largely imported, is particularly vulnerable to tariffs," Edwards said in a statement, adding that Louisiana is among the states most dependent on metals that have been hit by rising costs caused by tariffs.
https://www.nola.com/news/business/article_eb4bdb54-e3bf-11e9-a105-1fbf4a4b79a4.html