Raw Material Shortages Forcing Weirton to Cut Operation

Weirton Steel is temporarily halting its operation due to the shortage of coke.

A growing amount of coke, as well as ferrous scrap and other raw materials, have been moving to China, resulting in a decline in the availability of the material on the domestic market.

According to Weirton, operating reductions will include certain finishing and rolling processes, but the number of affected employees has yet to be determined. The situation also could cause the company to temporarily idle one of its two blast furnaces.

"At this time, we cannot provide specifics on the number of layoffs or the degree of operating cutbacks. The well-publicized coke shortage fluctuates daily. However, as we move closer to mid-January, when we believe we'll feel the full effects of the shortage, we'll be able to make a more precise decision on operations and manpower," said D. Leonard Wise, Weirton Steel chief executive officer.

"The coke issue has impacted several other domestic steel producers, including several that already have reduced their operations. Our employees and our customers should know that we're working diligently to minimize any negative effects on them."

U.S. Steel, which is Weirton Steel's primary coke supplier, was forced last month to reduce coke shipments following a fire at a West Virginia coal mine which has not yet resumed operations. The mine provided metallurgical coal to U.S. Steel's coke making plant in Clairton, Pa.

Reduced coke production from U.S. Steel has aggravated an already worldwide shortage of coke.