Republic Steel to begin production in Lorain; invests $12M overall

Steel production will begin in September for Republic Steel’s mill in Lorain.

Republic Steel announced the 9- and 10-inch rolling mill will restart in September. The company’s electric arc furnace, which is used in making steel, will be restarted as orders dictate.

The first phase of restarting production means Republic Steel will hire 80 people over the next two months for the rolling mill, according to the company’s announcement of June 20.

The rolling mill has the capacity of 35,000 tons a month. The Lorain line will expand its range of production, meaning more free capacity at Republic Steel’s Lackawanna, N.Y., facility.

“We have capacity available to supply the market now,” said Jaime Vigil, Republic Steel’s president and CEO. “We’ve been preparing our facilities to accommodate an increase in demand and are ready to take on new customers who want to buy from a U.S. manufacturer.”

Mayor Chase Ritenauer called the moves “definitely a positive step for the steel industry and the city of Lorain.”

“We’re certainly ecstatic,” he said.

The steel industry has been hit hard in recent years, so seeing any jobs come back is good for the city, those workers and the businesses that support the mills, Ritenauer said.

Republic Steel officials have spoken to the city administration, Lorain Port Authority and Lorain County staff about possibilities for the Lorain plant, Ritenauer said.

There could be good news for Lorain, although Ritenauer noted there are a lot of moving parts affecting the American steel industry right now, so no deals are final. Market conditions are subject to change, he said, and industry watchers are not sure what will happen with federal tariffs on imported steel.

Overall, the Lorain plans were part of Republic Steel’s announcement the company has invested $12 million in the last 18 months to supply increased market demand.

“The 232 steel tariffs have created additional demand for steel and Republic has the expertise, quality and open capacity to take on this increase in demand,” according to the company.

Republic Steel referred to the colloquial name of the tariffs, or fees on imported products. In federal law, it is Section 232 of the Trade Expansion Act of 1962 that gives the federal secretary of the U.S. Department of Commerce power to conduct investigations “to determine the effects of imports of any articles on U.S. national security.”

If the Commerce Department discovers a threat and the president concurs, the same law grants the president “broad power to impose trade remedies such as tariffs and quotas.” The Commerce Department has a web page dedicated to the 232 investigation of steel imports, which began April 19.

As for Republic Steel, the company has hired 25 workers for its Canton facility and is recruiting for 50 more. The company announced it has invested more than $6 million in its melt shop to increase its average production capacity from 40,000 tons per month to 75,000 tons per month.

In Lackawanna, N.Y., Republic Steel hired 50 new employees this year and is recruiting for 30 more.

Republic Steel has invested about $3 million in its rolling facility to increase its average production capacity from 40,000 tons per month to 60,000 tons per month. The company announced it has added a fourth crew on the rolling mill and increased its finishing and inspection capacity.

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