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Metals firms choose layoffs, shutdown
Wednesday, December 31, 2008

The impact of the recession on the metals industry has led one local manufacturer to lay off more than 200 workers during the final quarter of 2008, and another has announced that it would be shutting down completely.

Allegheny Ludlum notified the state that "unprecedented economic conditions have caused a sudden and unexpected reduction in our business" that led it to lay off a large portion of the work force at its Midland plant since October.

The company said that in August the plant was operating at close to full capacity and seeking to hire additional employees. But during the fourth quarter, orders for its stainless steel sheet metal dropped to a level 50 percent below projections and have remained at that level.

While expressing optimism concerning an economic recovery, the notice said "we cannot confidently predict when we would be able to recall our laid-off employees."

Meanwhile, St. Louis, Mo.-based Precoat Metals announced that its McKeesport facility would close by the end of March, idling nearly 100 workers.

Union officials say about one-third of the workers at Precoat Metals in McKeesport have been there more than 20 years.

The company paints and coats metal coils and is one of eight owned by the company nationwide. A company official said that tough economic times had hurt the market for the coils, and that the McKeesport plant was not as efficient or productive as others.

The plant was home to Enamel Products and Plating before Precoat bought the company in 1995.

Elwin Green can be reached at egreen@post-gazette.com or 412-263-1969.
First published on December 31, 2008 at 12:00 am