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View Full Version : Bayou Steel shuts suddenly with loss of 376 jobs in LaPlace; governor blames tariffs




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

Swordsmyth
10-02-2019, 12:12 AM
Even if the tariffs had something to do with this (questionable) these jobs and far more would have been destroyed by Chinese trade warfare against us.

fedupinmo
10-02-2019, 04:43 AM
"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,"
Such a shame we don't have any domestic scrap steel...

specsaregood
10-02-2019, 07:07 AM
Such a shame we don't have any domestic scrap steel...

Last I checked, scrap steel itself is not subject to tariffs. Only new steal, already recycled scrap steel (new), and raw steel.

tod evans
10-02-2019, 07:49 AM
Makes me wonder exactly what said plant actually did?

If there was no smelter then they were "recycling" on paper only.

specsaregood
10-02-2019, 07:58 AM
Makes me wonder exactly what said plant actually did?
If there was no smelter then they were "recycling" on paper only.

Indeed, I found an article from when ArcelorMittal sold the mill off a couple years back. It appears they take already recycled steel and turn it into:
"angles, beams, channel, flats and rebar for light structural shapes and merchant and rebar markets, with an annual steelmaking capacity of 620,000 mt and annual rolling capacity of 480,000 mt."

So they were using foreign already recycled steel and turning it into goods.

tod evans
10-02-2019, 08:34 AM
Indeed, I found an article from when ArcelorMittal sold the mill off a couple years back. It appears they take already recycled steel and turn it into:
"angles, beams, channel, flats and rebar for light structural shapes and merchant and rebar markets, with an annual steelmaking capacity of 620,000 mt and annual rolling capacity of 480,000 mt."

So they were using foreign already recycled steel and turning it into goods.

This country needs foundries.

Decline of industry can be tracked aside growth of government.

Partisan politics aside relying on rivals for key components of manufacturing is downright foolish.

specsaregood
10-02-2019, 09:08 AM
This country needs foundries.
Decline of industry can be tracked aside growth of government.
Partisan politics aside relying on rivals for key components of manufacturing is downright foolish.

Agreed, I posted a pic the other day of a furnace reactor tower being built in Toledo. Supposed to be going online early next year, taking domestic mined iron ore and spitting out hot bricked iron (HBI) for domestic steel manufacturers to use.

HBI used in electric arc furnaces are much cleaner for the environment. And HBI just happens to be a competitor of scrap steel...

enhanced_deficit
10-02-2019, 11:03 AM
U.S. manufacturing activity falls to its lowest level in more than 10 years (http://www.ronpaulforums.com/showthread.php?539786-U-S-manufacturing-activity-falls-to-its-lowest-level-in-more-than-10-years&)