Heidtman Closing Facility at RG Steel's Maryland Mill
Jul. 6, 2012
Heidtman Steel Products Inc. plans to close its Sparrows Point, Md., facility, located on the property of steelmaker RG Steel LLC, which filed for bankruptcy at the end of May.
The move by Heidtman - a large-volume processor and distributor of carbon steel sheet - is in response to declining demand for steel in the Northeast, which the plant has served for the past 25 years, president Tim Berra said in a statement. "The Northeast is no longer the manufacturing powerhouse and steel-consuming region it once was. Increasingly, we are seeing our northeastern customers reposition themselves geographically. Our primary supplier has struggled to maintain profitable operations for some time and its future is uncertain."
A controlled shutdown of its 254,000-square-foot plant will begin July 13, with the last shipments scheduled to leave the facility Oct. 31. Toledo, Ohio-based Heidtman will continue to serve its Northeast customers from its Cleveland location.
"Every link in the supply chain is interdependent and susceptible during an economic downturn; we are responding strategically to evolving market conditions," Berra said.
A company spokesman told AMM that the Sparrows Point plant is "running about 20% of the volume that we used to run during the peak production years at the facility."
Sparrows Point employees have been offered positions at other Heidtman facilities, but the company's hasn't yet determined how many workers will accept those offers, the spokesman said.
"While market conditions fluctuate, it's imperative that Heidtman remain flexible. We're fortunate to be in a position to pursue a dynamic growth strategy - to go where the business is going," Berra said.
Heidtman processes nearly 5 million tons of flat-rolled carbon steel products per year at 10 wholly owned and joint-ventures.
American Metal Market