Gerdau Ameristeel has decided not to restart its steel minimill in Sand Springs, Okla. The company idled the plant last year, along with several other facilities, due to economic problems. The company did not set a date for when the mill would be reopened.
The decision to keep the mill closed came after discussions with both the City of Sand Springs, as well as the state of Oklahoma. The company had met with government officials Jan. 7 to discuss future plans for the mill, including the possibility of reopening the mill in the future if business conditions warranted it.
"We appreciate the hard work of the City of Sand Springs, the state of Oklahoma, and the Sand Springs legislative delegation, led by House Speaker Chris Benge, State Senator Dan Newberry, State Representative Lucky Lammons, and Sand Springs City Manager Doug Enevoldsen," says Terry Sutter, vice president and COO of Gerdau Ameristeel. "We commend them for their extraordinary efforts in trying to find a workable solution to a very difficult problem. Unfortunately, due to a combination of on-going weak market conditions, the company's need for a significantly more flexible workforce structure at the mill, and the significant capital investment required by the company, we have decided not to move forward."
Despite the continued idling, Gerdau Ameristeel will continue to operate a number of facilities in the state, including rebar fabrication locations, recycling plants and railway facilities in Sand Springs, Muskogee, Oklahoma City and Tulsa. In Sand Springs, the company will continue to operate the Sand Springs Railway, as well as its Sand Springs Rail Products and Sand Springs Recycling facilities.