LACKAWANNA, N.Y. — The owner of Republic Steel plans to idle its steelmaking mills in Blasdell and another in Canton, Ohio.
A news release from Grupo Simec, which owns Republic Steel, says about 500 employees will be furloughed indefinitely, with 178 of them here in Western New York.
The mills produce leaded steel and other specialty steel products but say, "Ensuring future environmental compliance while producing steel in facilities that are up to 125 years old proved to be too challenging."
A local union representative told 2 On Your Side that the company has failed to invest in its mills and said "The bottom was dropped out from under us this morning."
Jaime Vigil, a Republic Steel board member and executive advisor, Grupo Simec had exhausted its options.
"We're facing an extremely challenging SBQ market in the U.S., with competitive market pricing and decreased demand," Vigil said in a statement. "At the same time, we've had to deal with increasing input costs on all raw materials, consumables, and labor, all as a result of the inflationary environment in the U.S. over the past year."
Erie County Executive Mark Poloncarz issued a statement concerning the move on Friday:
“As we learned yesterday evening, Grupo Simec, the Mexican company which owns Republic Steel, decided to “indefinitely idle” their plants here in Blasdell and in Canton, OH. Nearly 500 workers between New York and Ohio are being displaced, as the company moves those operations to Mexico. Nobody in Erie County government, the Town of Hamburg, the Erie County or Hamburg IDAs, organized labor, or the New York State Department of Labor was given advanced notice of this decision. That is unconscionable and cruel, and Erie County and the Department of Labor are looking into whether or not Grupo Simec violated the WARN Act. Because of this callous action, 178 of our Erie County neighbors, including 172 men and women of the United Steelworkers, are now unemployed.
"I am the proud son of a steelworker and a Lackawanna native who lived through the closure of Bethlehem Steel. What happened then holds true today; good paying, local jobs with great benefits were taken away in an instant to produce steel overseas. And, just as it was unwise then, it is unwise now. We learned invaluable lessons during the pandemic about the importance of domestic supply chains and the need for onshore manufacturing. We’ve seen through the war in Ukraine and tensions with China the necessity of strong, American manufacturing.
"The Biden administration and congressional leaders like Senator Schumer recognize this, with their efforts passing the CHIPS Act and the push for the new ONSHORE Act. And, Erie County witnesses this economic push for domestic manufacturing firsthand, with the bevy of activity at Renaissance Commerce Park – built atop the remnants of Bethlehem Steel.
"Erie County and our partners are here to help the 178 men and women of Republic Steel displaced by this repugnant, profits-over-people move by Grupo Simec. I want to thank our partners in New York State, Workforce Buffalo, Invest Buffalo Niagara, the Town of Hamburg, and the United Steelworkers for all they have done to quickly respond to this situation. Erie County maintains a steadfast commitment in providing access to good jobs and opportunity for all.”