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BlueScope Steel Shuts Down Shift, Lays Off 53
Friday, February 13, 2009 5:52 AM


(Source: St. Joseph News-Press)trackingBy Susan Mires, St. Joseph News-Press, Mo.

Feb. 13--It has been a brutal week for the local work force.

BlueScope Steel shut down its third shift and laid off 53 workers Thursday at its Varco-Pruden division in St. Joseph.

The facility on Lower Lake Road makes pre-engineered metal buildings, and after the layoffs employs about 130 people, 96 of whom work in the shop.

The layoffs were caused by unprecedented economic conditions, said Geoff Miller, vice president of human resources for BlueScope.

"In a typical year, we're seasonal, but it's much worse than normal," he said.

The BlueScope factory is located across the street from Smurfit-Stone Container, which announced on Monday it was closing its cardboard box factory and laying off 100 workers. Gray Manufacturing cut 40 jobs this week.

BlueScope hopes to rehire its workers at some point in the future.

"There's just no telling, with what the economy is doing," Mr. Miller said.

In addition, the company also plans to go ahead with plans to add a production and paint line. Mr. Miller said they would like to get part of the expansion, which would create 33 jobs, started this year. The company received $75,000 in incentives from Buchanan County for the expansion.

St. Joseph has started to feel the blows of a recession that has claimed jobs across nearly every sector.

"I feel very badly for each and every one of those families," said Ted Allison, president of the St. Joseph Area Chamber of Commerce.

The local unemployment rate was 5.8 percent in December, according to the latest figures available. Mr. Allison said he sees promise that the number is below the state average of 7.3 percent.

"My thinking is as soon as we get consumer confidence established, our local economy will snap back nicely," he said. "I hope we don't lose any more factories that close their doors."

BlueScope expects the facility to be viable in the long term, but said the layoffs were necessary to align staffing with short-term orders.

"It's no fun," Mr. Miller said. "I'd rather be doing anything else."

Business Editor Susan Mires can be reached at susanm@npgco.com.

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