NEW YORK Felman
Production LLC is laying off another 100 workers at its
suspended silicomanganese operations in New Haven, W.Va., due
to ongoing low market pricing.
The latest cuts come
after the company laid off 38 employees at the site in May (
amm.com, May 20) and then temporarily suspended
production at the end of June due to "challenging
ferrosilicomanganese market conditions" (
amm.com, June 28).
"Felman has been
carefully monitoring market conditions since its shutdown and
its decision to further reduce its work force is a direct
result of persisting low ferrosilicomanganese prices and high
manufacturing costs," the company said.
The latest job cuts
will take effect Aug. 31, leaving about 100 workers at the
plant. The company said it will continue to operate its slag
processing operation, while furnace maintenance personnel are
being retained so that Felman "is prepared to resume operations
if certain conditions permit it to do so," a company spokesman
"Felman is currently
reviewing a number of options to ensure the companys
long-term viability. The plant will continue to implement
cost-control initiatives and conduct plantwide maintenance in
preparation to restart its furnaces once the market environment
has improved," the company said.
The spokesman added
that Felman "does not anticipate any further layoffs at this
trading in a range of 49 to 51 cents per pound, according to
AMMs most recent assessment. Prices have dropped
steadily from a range of 73 to 79 cents per pound in March
Felman expects to meet
its long-term contract sales commitments during the suspension,
while "shipments in excess of contractual commitments will not
be available until improvements are seen," a company spokesman
previously told AMM.
Felman produces about
105,000 tonnes of silicomanganese annually at its 190-acre
facility in New Haven. The company is a wholly owned subsidiary
of Miami-based Georgian American Alloys Inc., which also owns
Miami-based Felman Trading Inc. and Calvert City, Ky.-based CC
Metals & Alloys LLC.