UPDATED to include comments from John Cirri
Severstal is expected to issue a federal plant closing notice to Sparrows Point employees as early as tomorrow in a further sign that the Baltimore County facility will be idled for a lengthy period, The Brew has learned.

The mill has not produced steel since late July and has been shutting down other operations as a result of what the Russian-based company calls a slowdown in customer orders due to a weak economy.

Severstal informed union representatives that it plans to issue Worker Adjustment and Retraining Notification (WARN) Notices, which are required by federal law for long-term layoffs and plant closings.

John Cirri, president of Local 9477 of the United Steelworkers Union, informed union members last night to expect WARN Notices.

Melvin E. Baggett, Severstal North America’s vice president for human resources, has informed Sparrows Point management of the pending WARN notices, according to well-placed sources.

Marika Diamond, spokesperson for Severstal, did not respond to a Brew request for comment today.

Cirri earlier estimated that between 1,000 and 1,200 employees  – out of a unionized force of 1,800 – would be placed on layoff. Cirri could not be reached for comment.

Last night Cirri confirmed the coming of WARN notices and issued a statement critical of Severstal (see below).

Sparrows Point employees are currently on a contract that expired in September and is extended on a day-by-day basis.

Selling off Raw Materials and Plant Equipment

Since the “L” blast furnace was shut in July, Severstal has been aggressively selling off mill assets.

These include tens of thousands of tons of iron ore, the raw ingredient for steelmaking, as well as computers and motors housed in the now-idled hot strip and other finishing mills.

“They’re selling off anything they can get their hands on, including raw material and scrap,” a well-informed source said today.

At the same time, Severstal has placed Sparrows Point and two other U.S. mills for sale.

The company has not disclosed information on potential buyers, who had an Oct. 22 deadline for submitting bids.

Among those expressing interest in buying Sparrows Point are the Renco Group, a holding company controlled by New York financier Ira Rennert, and Essar, an Indian steelmaker.

UPDATE: John Cirri called for a sale of the plant last night, saying he does not foresee the mill restarting production anytime soon if it remains under Severstal ownership. Here is his full statement:

“While the WARN notice is due to the number and duration of layoffs and not an announcement of a plant closure, it just deepens the wounds being suffered by our members, their families and the surrounding communities. The number of expected layoffs could exceed 1,000 within the next few weeks.

“Sadly, I do not foresee a start-up anytime soon while we remain Severstal. What we need is an expedited sale of our plant for a brighter future and for the ‘Beast of the East’ [the L blast furnace] to once again claim its dominance in the entire Northeast region.

“My heart truly goes out to our members and their families that are being adversely affected by the course Severstal has taken. Nothing has ever came easy to Steelworkers and nothing ever will, but I remain confident we will pull through this crisis.”