Magnetation, an iron ore producer, announced possible layoffs and a decline in production next year at a plant in Bovey, Minn., in the state’s Iron Range, troubling a region already ailing from a downturn in the steel industry. The company said the layoffs would affect up to 163 workers. A day earlier, another iron ore producer, Cliffs Natural Resources, said it would temporarily shut down a plant, Northshore Mining, in a move that could sideline up to 540 workers starting next month. Larry Lehtinen, chief executive of Magnetation, said, “While any operating curtailment is unfortunate, we must balance our current production with our customers’ needs to sustain our business in these challenging markets.” While the Iron Range region is accustomed to up-and-down cycles, this one is more worrying because other downturns have tracked with national economic recessions, said Mark Phillips, commissioner of the Iron Range Resources & Rehabilitation Board, an economic development agency. In this case, Mr. Phillips said, a strong dollar has made American steel hard to export, low oil prices have reduced producer demand for tubular steel goods, and other countries are flooding the market with cheap steel. State leaders are considering a special session to provide extended unemployment benefits to steelworkers.
Source: http://www.nytimes.com/