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Production pruning - Pittsburgh based 3 galvanizing firms suffering
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Tuesday, 02 Jun 2009
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Pittsburgh Live reported that with the steel industry cutting production, closing plants and laying off thousands worldwide, three steel galvanizing plants in the Pittsburgh area, known as The Techs, are feeling effects of the slowdown.

As per report, production is off more than 50% and the 215 employees at The Techs are working reduced schedules. But they still are collecting paychecks most of the time, supplemented by unemployment compensation when they are on temporary layoff.

Mr Anderson, a 25 year veteran of the steel industry, said that "We are reducing costs, but we are keeping our employees for when things pick up. We don't want to lay off workers. That's an action of last resort."

Mr Anderson said that this year, the Techs have been hurt by the downturn in key markets such as construction and agriculture, as well as some appliance markets.

He added that "I've never seen it this bad for this long. We've had slow months, but nothing this prolonged. Even so, we are reaching the point at which a lot of inventory stockpiles are low. Once service centers deplete their inventory our sales will match consumption."

The three plants, MetalTech in South Oakland, GalvTech in Pittsburgh's Hays neighborhood and NexTech in Turtle Creek, produce hot dipped galvanized, low carbon steel of varying gauges and widths. In 2008, the three plants produced 824,000 tonnes of flat rolled steel, about 15% of the company's total shipments.

(Sourced from www.pittsburghlive.com)

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