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CMC's Ark. site to cut staff on slow orders

Keywords: Tags  CMC, Commercial Metals, T-post, rebar, Magnolia, Arkansas, Steven Hughes, layoffs steel


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 AMM.

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 wouldn’t be laid off. It’s a matter of having work for them to do."

In the Irving, Texas-based company’s 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.

"We’re thankful it’s just approximately 50 people, not the whole plant getting shut down," Hambrice added.


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