Gerdau Ameristeel Idles Sand Springs Mill

Gerdau Ameristeel Corporation (Tampa, FL) recently announced it reached an agreement with the United Steel Workers (USW) regarding the suspension of production at the company's steel mill located in Sand Springs, OK. Members of USW Local 2741 voted to accept the terms and conditions of the agreement in August. In connection with this action, the company expects to incur an accounting charge within the range it announced that same month.

An orderly wind-down of production at the mill is anticipated over the next several weeks. The company is working with local, state and federal agencies to offer assistance to impacted employees through this transition period. Impacted employees will have the choice of extended recall rights or severance as outlined in the collective bargaining agreement. Service to Gerdau Ameristeel customers will be uninterrupted and will be provided by the company's extensive network of mills in North America.

Back in June, the company announced that it would enter into discussions with the USW regarding the potential closure of the mill. The company continues to investigate alternatives for modernization of the Sand Springs Mill and the resumption of production to meet future market demand. Discussions with state and local government officials regarding potential economic incentives are ongoing. It is estimated that even if an agreement is reached regarding these economic incentives, the mill will be idled for at least 24 months while required capital improvements are completed.

Gerdau Ameristeel is the second largest mini-mill steel producer in North America, with annual manufacturing capacity of approximately 12 million tons of mill finished steel products. Through its vertically integrated network of mini-mills, scrap recycling facilities, and downstream operations, Gerdau Ameristeel serves customers throughout the U.S. and Canada.

The company's products are generally sold to steel service centers, steel fabricators, or directly to original equipment manufacturers (OEMs) for use in a variety of industries, including non-residential, infrastructure, commercial, industrial and residential construction, metal building, manufacturing, automotive, mining, cellular and electrical transmission and equipment manufacturing.

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www.gerdauameristeel.com