Magnetation has announced it may close its Minnesota iron ore concentrate plants and rail loading facility, as well as its pellet plant in Reynolds, Indiana, US.
If the shutdown takes place, it is expected around 30 September. Until the closure, the company intends to continue operations as usual.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Magnetation said that the move has been done in compliance with the US Department of Labor's Worker Adjustment and Retraining Notification (WARN) Act by notifying local officials and the International Union of Operating Engineers Local regarding production stopping and job cuts.
Warn Act notification will be provided 60 days in advance if there is potential to layoff more than 50 employees.
Magnetation CEO Larry Lehtinen said: "While this was a difficult decision, the company believes that, in light of current circumstances, preparing for a safe and orderly wind-down while we continue to seek an alternative to a shutdown is the best course of action to support what is in the best interests of our employees, creditors and other critical constituents.
“As a result, we are communicating the proper notifications to our employees and the communities. We will be working closely with the appropriate governmental agencies to assist any affected employees who would be laid off if this shutdown is implemented."
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataIn connection with the potential closure, Magnetation has signed an agreement with AK Steel, and its senior secured lenders to cease operations and implement a wind-down process.
In Minnesota, the company has three iron ore concentrate plants in Keewatin, Bovey and Grand Rapids, in addition to an iron ore pellet plant in Reynolds, Indiana.
