COALTON, Ky. (KT) - A northeastern Kentucky steel plant is closing in March with a cost of 113 jobs.
Kentucky Electric Steel human resources manager Michael Estep sent the bad news Tuesday via email to Ashland Mayor Steve Gilmore.
The email from the company cites “current business challenges” and says the plant will “cease all operations . . . this action is expected to be permanent.”
The closure is expected to take effect March 10, according to the email.
Some union workers may have “bumping rights,” according to the email. That means they would be entitled to assume jobs of less senior employees.
Union workers are members of the United Steelworkers Union Local 7054.
The loss of income will impact families but also mean a loss of payroll tax revenue in Boyd County.
The move comes two years after the idling of the AK Steel plant.
“Any time we lose 100 plus jobs it affects people in Ashland and the surrounding area,” Gilmore said.
The plant’s parent company, Optima Specialty Steel, filed for Chapter 11 bankruptcy in December 2016 in a bid to restructure its finances while continuing to operate.
The mill produces bar flats for both generic and specialty applications, according to the KES website.