According to local news, Gerdau’s facility in Calvert City, Kentucky is planning on idling. Calvert City Mayor Lynn Jones said employees were notified Wednesday morning.
Kim Selph, Gerdau’s Communications and Public Affairs Director, confirmed that the company held meetings with employees to inform them they are targeting an idling by the end of November.
In a statement, Selph said: “Gerdau has informed the Union and employees at the Calvert City mill that it is considering an idling of the facility. The industry continues to suffer significant losses due to a global overcapacity of steel, which has led to depressed prices and intense competition between producers. The Calvert City mill has been a particular challenge for cost-competitiveness, because it does not have a melt shop. It has made it very challenging to compete with companies expanding into the facility’s product range. The company made several attempts over the past few years to make the facility successful. Unfortunately, these efforts have not led to increased cost-competitiveness.”
According to Mayor Jones, idling the plant could affect over 100 employees.