The Herald-Dispatch
HUNTINGTON — Steel of West Virginia will idle its melt shop in Huntington, the company announced Wednesday. The decision will affect about 100 jobs.
Steel of West Virginia says in a news release “planned strategic adjustments” at the Huntington facility are being made to promote job sustainability and meet customer demand.
“The current U.S. trade policy coupled with onshoring momentum has created a strong demand outlook for much of the product line and positively impacts the plant’s potential for a sustainable future,” the company said in the release.
Steel of West Virginia produces specialty steel products and performs fabrication and finishing operations for customers.
It says the “1950s vintage melt shop” has reached the end of its life cycle.
In conjunction with its closure, Steel of West Virginia is planning a multi-year investment campaign of approximately $30 million to improve the productivity, quality and efficiencies of its two rolling mills in Huntington, according to the release.
“By optimizing our rolling mill operations and using readily available domestic steel billets, we believe we will be positioned to achieve a sustainable profit profile that supports continued operations, meets customer demand, and supports meaningful manufacturing jobs,” said Michael Winarta, SWVA general manager, in the release. “To mitigate the impact on our team, we plan to work with the bargaining unit and our existing staff to appropriately align expertise and staffing levels with the needs of our remaining operations.”
SWVA currently employs more than 600 people in Huntington. It says planned changes will preserve about 500 of those jobs.
“Our dedicated local employees are the heart of SWVA, and that will not change as we look forward to a strong future right here in the Jewel City,” Winarta said.
The City of Huntington reached out to Steel of West Virginia to offer for support following the announcement, Mayor Patrick Farrell said in an email Wednesday sent by City Communications Director Evan Lee.
Farrell said he spoke to Winarta, who again ensured the company would help its affected employees navigate the transition.
“At the same time, their $30 million investment shows they’re adapting to stay competitive in a changing industry and are committed to remaining an important part of Huntington’s future,” Farrell’s statement said.
Image by Ryan Fischer, The Herald-Dispatch