Gerdau Ameristeel Reaches Idling Agreement with the USW at the Company's Sand Springs Mill
Friday , August 28, 2009 08:55ET
TAMPA, FL, Aug. 28 /PRNewswire-FirstCall/ - Gerdau Ameristeel Corporation (NYSE: GNA; TSX: GNA) announced today that it has reached agreement with the United Steel Workers (USW) regarding the suspension of production at the Company's steel mill located in Sand Springs, Oklahoma. Members of USW Local 2741 voted to accept the terms and conditions of the agreement on August 27, 2009. In connection with this action, the Company expects to incur an accounting charge within the range it announced on August 6, 2009.
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.
On June 8, 2009 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.
"It was the best of times, it was the worst of times; it was the age of wisdom, it was the age of foolishness;
-- Charles Dickens
