NEW YORK Commercial
Metals Co. (CMC) will lay off a portion of the work force at
its Magnolia, Ark., steel mill and post-making facility during
the next two months, a company spokeswoman told
She declined to specify the
number of impacted employees or the potential effect on
production but said the staff reduction in Magnolia "will
affect one-third of its operations."
Steven Hughes, director of
operations at the Magnolia location, said in a statement that
the cuts are "necessary to align our work force with the lower
current business level that we are experiencing."
"With recent decreases in some
of the core products, we were forced to take these measures to
remain viable for the future," he added.
A local development official at
the Magnolia Economic Development Corp. (MEDC) told
AMM the layoffs are expected to impact about 50
employees on the T-post production line, though the company did
not confirm this information. MEDC will be working with the
company and other groups to assist with job placement after the
layoffs take place, CMC said.
However, MEDC executive director
Cammie Hambrice said that if the location improves its sales
before July 1, some of the employees could be retained. "The
T-post line right now is at a low and they have a lot of back
stock," Hambrice said. "Between now and July 1, if they get
some T-post orders, a lot of those people wouldnt be laid
off. Its a matter of having work for them to do."
In the Irving, Texas-based
companys second fiscal quarter ended Feb. 28, CMC saw its
total structural and post product shipments decline to 37,000
tons from 40,000 tons in the second quarter of 2012.
"Were thankful its just approximately 50 people,
not the whole plant getting shut down," Hambrice added.