A Snow Shoe Township manufacturer of goods used by the steel industry has laid off more than two thirds of its workforce, the latest local casualty of the global economic slowdown.

Mr John Koprevich GM of Snow Shoe Refractories said that it let go 25 of its 35 employees earlier last month. He added that "The economy is still reeling, and bigger customers have pulled back on their orders."

The company manufactures bricks that line kilns used in steelmaking. A few years ago, it was spun off from Vesuvius, an international conglomerate that develops, manufactures and markets specialty ceramics and refractory products. Since it began functioning independently, Snow Shoe Refractories at one point had as many as 48 employees before the recession hit.

Mr Koprevich said that the layoffs are expected to be temporary, and will end when a series of expected new orders are placed. He added that "We are doing what we’ve normally done over the last 10 years, a reduction of staff over short-term period. This is nothing permanent. We will probably be back to being fully staffed again the week of October 17th 2011."

Mr Rob Crolius, president of the Pittsburgh based trade group The Refractories Institute, said that the industry has been contracting for years. He added that "We've seen a reduction in the number of U.S. refractories manufacturers, particularly over the last 15 years. Over that time, the industry has become much more global with stiff competition from China and elsewhere. There has been a lot of consolidation in the US industry and many old and inefficient facilities have been retired."

Mr Crolius said that around 70% of the North American refractories market is the steel industry, which has taken a strong blow from the recession. He added that "They are coming back slowly, but the problem is everybody has the same concerns you are hearing about the economy: Folks are waiting for the markets to settle down. Many American manufacturers ... are operating pretty conservatively these days. Inventories are kept low and maintenance deferred while we all wait to see how the economic situation is sorted out."

Mr Crolius remained optimistic small companies like Snow Shoe Refractories still have a place in the market. He said that "Some of the most successful companies in the refractories industry are little niche companies. If they find a market other companies aren’t really serving, they can do pretty well for themselves."

(Sourced from www.centredaily.com)