Republic Steel in Canton will be idling its steel production indefinitely, according to a release from Grupo Simec.
The company also has a location in Lackawanna, New York, which will also be halting production.
With both locations idling, about 500 Republic Steel employees will be furloughed indefinitely.
During this indefinite period of inactivity, U.S. consumers will be served via Grupo Simec’s steel mill in Tlaxcala, Mexico.
"We're facing an extremely challenging SBQ market in the U.S., with competitive market pricing and decreased demand," Jaime Vigil, Republic Steel board member and executive advisor, said in a statement. "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."
According to the release, Grupo Simec and Republic Steel are the only companies to produce and distribute leaded steel in the U.S.
In Canton, they have been producing steel in a 125-year-old factory, making it difficult to comply with National Ambient Air Quality Standards set for steel making. Therefore, the company said it found it to be best for operations to move to the Tlaxcala location.
"This isn't an easy decision," Vigil said in a statement. "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 product, 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."
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