Sparrows Point blast furnace idled again
((May 21 UPDATE – Jerry Nelson said this morning that L furnace is back in operation, at what capacity and for how long he did not say.))
Production at the Sparrows Point blast furnace was halted Friday due to a shortage of raw materials.
Jerry Nelson, general manager of commercial sales for RG Steel, and Bette Kovach, company spokesperson, did not respond to The Brew’s request for comment.
Chris McLarion, vice president of Sparrows Point Local 9477 USW, reached this evening, said, “I have no comment.”
The giant L furnace was “hot idled” on Friday morning due to a lack of material coming to the sinter plant, according to informed sources. The plant feeds coarse-grained iron “sinter” into the blast furnace, which makes the pig iron that the entire mill depends on for production.
RG Steel has been slow to pay vendors and many of its raw materials, including iron ore and coke, are controlled by third parties and cannot be used by the company until released by the owners.
The Brew has reported that the company is experiencing both a “liquidity crisis” and sharp drop in customer orders. The low level of steel prices has also negatively impacted on the company.
The latest onset of problems, which mirrors a cash shortfall that shut the mill last December-January for four weeks, has led to some long-term layoffs at the plant, beginning this week.