Feb. 12--CHARLESTON, W.Va. -- While West Virginia has held on to jobs better than most states, Gov. Joe Manchin warned Wednesday night of "tougher times ahead" for businesses and workers across the state as the national and global economy worsens.

"We've witnessed layoffs and shutdowns at our plants and watched in sadness as some of our retailers have closed their doors," Manchin said during his State of the State address. "We must be more diligent now than ever before."

In recent months, several companies in southern and central West Virginia -- including Century Aluminum, Patriot Coal Corp. and Dow Chemical -- have announced substantial job cuts.

Century Aluminum plans to close Feb. 20. More than 650 workers will lose their jobs. The company blamed the shutdown on slumping aluminum prices and higher energy costs.

"We are experiencing a global economic transformation -- some even call it a financial meltdown," Manchin said. "It is one of the most dramatic economic downturns since the Great Depression and all of us -- directly or indirectly -- are dealing with its effects."

Manchin did not mention any specific steps to attract new businesses to the state, though he touted his administration's past accomplishments.

Since 2005, more than 200 companies have located or expanded in West Virginia, investing more than $8 billion, the governor said.

Last year, West Virginia exports grew 41 percent to $5.6 billion, outpacing the national rate of 12 percent, Manchin said.

"Our state statistics show we've had business growth," said Steve Roberts, president of the state Chamber of Commerce. "We're reforming workers' comp, reducing insurance costs and cutting taxes. The governor's policies are working, and we need to do more."

Manchin's proposal Wednesday night to expand the state's Medicaid program also will provide health insurance to more working families, helping to reduce insurance costs at some businesses, Roberts said.

"The governor has done a terrific job of linking the social goals of improved health and education with economic development and job creation," Roberts said.

Steve White of the Affiliated Construction Trades Foundation said he was pleased that Manchin acknowledged the state faces rough economic times, but surprised that the governor didn't mention President Obama's economic stimulus plan and how it would bolster West Virginia's economy.

"I was disappointed we didn't hear more about infrastructure," said White, who directs the labor umbrella group. "There's a lot of unemployment and uncertainty out there. It's important to put people back to work and rebuild confidence."

Also Wednesday night, Manchin announced he was introducing a bill that requires chemical plants and other industrial factories to report major accidents within 15 minutes, as mine operators now must do.

The bill also would require plants to provide access to emergency crews and establish a communication system after explosions, leaks and other industrial accidents.

Manchin's bill was in response to an Aug. 28 explosion and fire at Bayer CropScience's chemical plant in Institute. The explosion killed two workers.

County emergency managers, area firefighters and local police officers criticized Bayer for repeatedly refusing to quickly provide details about what had happened at the plant.

Manchin instituted the 15-minute reporting requirement for coal-mining accidents after the Sago Mine disaster and the Aracoma Mine fire in 2006.

Reach Eric Eyre at ericeyre@wvgazette.com or 304-348-4869.

-----

To see more of The Charleston Gazette, or to subscribe to the newspaper, go to http://www.wvgazette.com.

Copyright (c) 2009, The Charleston Gazette, W.Va.

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

NASDAQ-NMS:CENX, NYSE:PCX, NYSE:DOW, Bombay:506285,

A service of YellowBrix, Inc.