Guadalajara, Mexico-based Grupo Simec, a specialty steel producer of steel wire, bars, and other steel products has announced the indefinite idling of its Canton, Ohio-based Republic Steel operations in Canton, Ohio, and Lackawanna, New York, as production has been moved to the company's state-of-the-art steel mill located in Tlaxcala, Mexico.
The idled operations will affect 500 employees who are considered to be furloughed rather than laid off.
According to Jaime Vigil, Republic Steel board member and executive advisor, "We're facing an extremely challenging SBQ[special bar quality] market in the U.S., with competitive market pricing and decreased demand. At the same time, we've had to deal with increasing input costs on all raw materials, consumables, and labor, all as a result of the inflationary environment in the U.S. over the past year."
"One of our core values at both Grupo Simec and Republic Steel is to always be environmentally responsible. As the only producers of leaded steel in North America, we also owe it to our customers, and their customers, to be a reliable supplier of such products."
"This isn't an easy decision. But we feel it's the only way for us to continue to serve our U.S. customer base with an ongoing and reliable supply of products, including leaded steel, and to do so at a competitive price point. Ultimately, we're responsible to our shareholders and our customers. We're simply doing what needs to be done to meet our responsibilities."
"Republic Steel employees are hard-working and dedicated. Their roots date back to the late 1800s. They're an important reason this company has been a leader in this industry for so long. And we thank them for their important contributions."
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?