GRAND RAPIDS, Minn., Jan. 6, 2016 /PRNewswire/ -- Magnetation LLC (Magnetation) announced today that it is implementing a temporary production curtailment at its Plant 2 facility located at 27968 County Road 10, Bovey MN 55709. The production curtailment will occur on January 18, 2016.
Magnetation had previously announced the potential for this curtailment on November 18, 2015, in compliance with the U.S. Department of Labor's Worker Adjustment and Retraining Notification (WARN) Act. WARN Act notification is required 60 days in advance under certain circumstances when there is a potential for layoffs of more than 50 employees for a period in excess of six months.
"In these difficult market conditions, we must balance our current production with our customers' needs to sustain our business. As a result, we have to make the necessary production adjustments and associated staffing reductions," said Larry Lehtinen, CEO of Magnetation. "At this time, there is no way to predict how long this curtailment may last. We continue to work closely with the appropriate governmental agencies to assist all affected employees who are impacted by this operating curtailment."
Magnetation LLC is a joint venture between Magnetation, Inc. (50.1% owner) and AK Steel Corporation (49.9% owner). Magnetation LLC recovers high-quality iron ore concentrate from previously abandoned iron ore waste stockpiles and tailings basins. Magnetation LLC owns three iron ore concentrate plants located in Keewatin, MN, Bovey, MN and Grand Rapids, MN, and an iron ore pellet plant in Reynolds, IN. Additional information about the company is available at www.magnetation.com.
This press release contains statements that are forward-looking in nature and relate to our expectations, beliefs and intentions. All statements other than statements of historical fact are statements that could be deemed to be forward-looking, including but not limited to statements about the expected impact and timeframe of the Plant 2 curtailment and our ability to continue to fulfill customer needs. These statements are subject to risks, uncertainties and assumptions that could cause outcomes to differ from our expectations, including but not limited to continued depression or further decreases to iron ore prices, changes in demand for our products or steel, unforeseen operational difficulties with or costs relating to our plants or third-party suppliers, negotiations with collective bargaining units, and other factors described in the reports and information provided to our investors. We assume no obligation and do not intend to update any such forward-looking statements.
Media Contact: Matt Lehtinen
Phone: (414) 688-0682
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SOURCE Magnetation LLC