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Jan 22, 2024

TimkenSteel to cut 100 jobs, move work to Faircrest from Harrison

CANTON TimkenSteel will idle its melt and cast operations at the Harrison Steel Mill in a move that could affect about 100 jobs.

Company directors announced the decision, which was made last week, Tuesday morning. According to a filing by the company with the Securities and Exchange Commission, the mill will be idled by the end of March.

Plans are for all steel melting and casting activities to move to the Faircrest Steel Mill, which has seen upgrades in recent years. Finishing operations and rolling mills in the Harrison plant will continue operating.

TimkenSteel currently is reviewing operations at Harrison to determine potential use for the melt and casting equipment, according to information the company filed with the SEC.

Steelworkers Golden Lodge Local 1123 represents most of the workers. Job cuts will be made in line with the union contract, and company officials said the number of workers who will be impacted was unknown at this point.

Bob Harper, Local 1123 president, said the union has just over 1,200 members working in TimkenSteel's three mills. The bulk of the workers are working at steel processing operations in the Gambrinus mill.

The local had about 380 members on layoff, but the number had shrunk to just under 300 members, Harper said. Some workers had been recalled because of retirements. Harper expects layoffs will climber to between 380 and 400 Steelworkers as changes are made at the Harrison mill.

"I think we're adjusting for the market," Harper said, adding that TimkenSteel's orders seem to be down. The company supplies steel for the oil and natural gas industry, as well as automotive, and both markets are down.

The coronavirus pandemic also has been a factor. Other steel companies around the country have idled production since the pandemic began.

Harper said he hopes the company decides to reopen the Harrison mill, but doesn't know how long it might be idled. "It could be three months, or it could be three years."

The company will move production to Faircrest to make better use of its $225 million jumbo bloom vertical caster, which was installed before the steel business was split from Timken Co. in 2014.

"They want to make sure that keeps busy," Harper said of the bloom caster.

The melts scrap and cast steel bars at the Harrison Mill. The bloom caster at the Faicrest Mill is among the largest in the world, with the ability to cast cleaner and stronger steel, according to company officials.

The company, which will announced financial results for 2020 next week, expects to save between $15 million and $20 million by idling the operations at the Harrison Mill. The company expects to write down cash charges of $8 million to $10 million for the 2021 first quarter.

On Jan. 1, Michael S. Williams took over as TimkenSteel's president and chief executive officer and joined the board of directors. Williams replaced Terry Dunlap, who served more than a year as interim president and CEO following the departure of Ward J. "Tim" Timken Jr., who left the company in October 2019.

The company traces its history to 1917 when Timken Co. decided to begin producing steel for its tapered roller bearings. In May 2012 outside investors started pushing Timken Co. to spin off the steel business as a separate company. The effort became public later that year and was finalized in 2013.

Since the split, the steel business has struggled to post a profit, in part because of the volatility of the markets its supplies. Last year the company closed a finishing operation in Houston that supplied the oil and gas industry, but expanded a facility near Dayton that supplies automakers. It also took steps to reduce the salaried workforce.

Reach Edd at 330-580-8484 or [email protected]

On Twitter: @epritchardREP

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