Republic Steel has abruptly shut down its plant on Route 5 in Blasdell, dealing another devastating blow to a region that was once home to one of the largest concentrations of steel jobs in the world.
Grupo Simec, which acquired Republic Steel in 2005, announced Thursday it will "indefinitely idle" steelmaking operations at its Republic Steel mills in Blasdell and Canton, Ohio, putting 500 people out of work.
It is unclear exactly how many employees still worked at the Blasdell plant.
According to Grupo Simec, Republic Steel’s U.S. customers will be served via its state-of-the-art steel mill in Tlaxcala, Mexico.
Jaime Vigil, Republic Steel board member and executive adviser, cited competitive market pricing and decreased demand along with increasing input costs on all raw materials, consumables, and labor as reasons for this decision. In addition, it was also said that ensuring future environmental compliance while producing steel in facilities that are up to 125 years old proved to be too challenging.
Attica resident, Bob McAuley, has worked at Republic Steel for more than 20 years.
"We had a lot of rumors at work so I thought maybe it was just more rumors, then more and more text messages came in. I figured I was just going to go to work and see what happens," Bob McAuley said.
He had only been at work for about 45 minutes when he was told to go home.
"I was just walking around a little bit and checking out departments and there was just nobody around, until finally I found two management people that were walking together. That's when they came up to me and said, 'Well, apparently, you weren't notified but they are shutting the plant down. They are idling the plant," McAuley said.
Now, McAuley has to figure out a plan fast because his job is also how his family receives benefits.
"I spend a lot of time there so I don't know. Together, I have 10 children, six of them are still at home. I got to figure something out here soon," McAuley said.
This is just another blow to Buffalo's steel industry.
When another steel making heavy hitter, Bethlehem Steel, closed in 1983 that put 7,300 workers out of a job.
Nothing has been posted on the state's Warn Notices page which is an act that provides companies with more than 100 employees to give a 60 day notice for planned closings or mass layoffs.
“This isn’t an easy decision. But we feel it’s the only way for us to continue to serve our U.S. customer base with an ongoing and reliable supply of product, including leaded steel, and to do so at a competitive price point. Ultimately, we’re responsible to our shareholders and our customers. We’re simply doing what needs to be done to meet our responsibilities.”
Vigil also recognized Republic Steel employees.
“Republic Steel employees are hard-working and dedicated. Their roots date back to the late 1800s. They’re an important reason this company has been a leader in this industry for so long. And we thank them for their important contributions.”
