Åkers National Roll Issues WARN Notice at Avonmore Facility
October 31 2016 - 5:05PM
Business Wire
Ampco-Pittsburgh Corporation (NYSE: AP) and Union Electric Steel
Corporation (“Union Electric Steel”), a wholly owned operating
subsidiary of Ampco-Pittsburgh, today announced that Åkers National
Roll Company (the “Company”), issued a Worker Adjustment and
Retraining Notification (WARN) Act notice to certain employees at
the Company’s Avonmore, Pennsylvania, facility, union officials,
and government officials. The notice states that the Company, which
is a subsidiary of Union Electric Steel, intends to temporarily
idle certain operations at the facility as a result of continued
challenging global market conditions.
The notice initiates the 60-day period that must be provided
prior to idling operations and laying off employees under the WARN
Act. If market conditions do not improve, idling of the affected
portions of the facility is expected to begin in early January
2017. Union Electric Steel does not expect these actions to cause
any interruption in shipments to its customers.
“Union Electric Steel is restructuring its global cast roll
operations to be more competitive in current market conditions.
Cast roll demand in 2016 has continued to decline, resulting in low
utilization rates at our cast roll manufacturing plants. Åkers
National Roll has been especially challenged due to a high cost
structure, made worse by a strong U.S. dollar. We believe that
consolidation of operations will improve overall plant utilization
and our financial performance,” said Rodney Scagline, President of
Union Electric Steel.
Mr. Scagline continued, “We recognize the impact that these
actions will have on employees and in the community, and we are
working closely with the United Steelworkers Union Committee to
explore other restructuring possibilities in order to minimize job
losses within the Company.”
John Stanik, Chief Executive Officer of Ampco-Pittsburgh,
commented, “We regret that these decisions are necessary to bridge
this period of extremely challenging market conditions. The
Corporation remains committed to the future of our businesses, to
our shareholders, to our employees, and to continuing to serve our
customers with the excellent products and services that they have
come to expect from Union Electric Steel and Åkers National
Roll.”
About Ampco-Pittsburgh Corporation
Ampco-Pittsburgh Corporation, through its operating subsidiary,
Union Electric Steel Corporation, is a leading producer of forged
and cast rolls for the worldwide steel and aluminum industries, as
well as ingot and open die forged products for the oil and gas,
aluminum, and plastic extrusion industries. Ampco-Pittsburgh is
also a producer of air and liquid processing equipment, primarily
custom-engineered finned tube heat exchange coils, large custom air
handling systems and centrifugal pumps. The Corporation operates
manufacturing facilities in the United States, United Kingdom,
Sweden, Slovenia, and China. Sales offices are located in North and
South America, Asia, Europe, and the Middle East. Corporate
headquarters is located in Carnegie, Pennsylvania.
The Private Securities Litigation Reform Act of 1995 (the “Act”)
provides a safe harbor for forward-looking statements made by or on
our behalf. This news release may contain forward-looking
statements that reflect our current views with respect to future
events and financial performance. All statements in this document
other than statements of historical fact are statements that are,
or could be, deemed forward-looking statements within the meaning
of the Act. In this document, statements regarding future financial
position, sales, costs, earnings, cash flows, other measures of
results of operations, capital expenditures or debt levels and
plans, objectives, outlook, targets, guidance or goals are
forward-looking statements. Words such as “may,” “intend,”
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forward-looking statements. Forward-looking statements speak only
as of the date on which such statements are made, are not
guarantees of future performance or expectations, and involve risks
and uncertainties. For Ampco-Pittsburgh, these risks and
uncertainties include, but are not limited to, those described
under Item 1A, Risk Factors, of Ampco-Pittsburgh’s Annual Report on
Form 10-K. In addition, there may be events in the future that we
are not able to predict accurately or control which may cause
actual results to differ materially from expectations expressed or
implied by forward-looking statements. Except as required by
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result of new information, events or otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20161031006243/en/
Ampco-Pittsburgh CorporationMelanie L. Sprowson,
412-429-2454Director, Investor Relationsmsprowson@ampcopgh.com
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