Thetimesonline.com reported that Beta Steel will begin temporarily laying off workers in response to a decrease in the demand for steel.

Mr Andre Joseph VP of International Longshoreman's Association Atlantic Coast District said that "It is all tied to the weak economy. There are no orders for steel."

The union, which represents about 250 Beta employees, was notified of the layoffs by the company. About 110 maintenance and production workers in the plant's hot-strip rolling mill will be affected by the first round of layoffs, which will last for about two weeks. Workers return to the plants in early December and then face a second temporary layoff.

Mr Joseph said that the entire plant will shut down in mid December 2008 through early January 2009. He added that "It is never a good time for a layoff. But it's even harder when it hits around the holidays."

Beta produces hot rolled bands. About 35% of its capacity is sold to pipe and tube producers. It will continue to provide workers on layoff with full insurance coverage. The mini mill was purchased for USD 350 million on October 31st 2008 by Novolipetsk Steel.

Beta Steel operates an electric arc furnace melt shop with 700,000 tonnes of annual capacity and a hot-strip rolling mill with capacity to roll 1.1 million tonnes a year.