Ormet Shutdown Announced


Ormet stated that it cannot emerge from bankruptcy and must immediately shut down operations as the Public Utilities Commission of Ohio (PUCO) denied the majority of Ormet’s request for an energy transition plan that would allow it to operate while constructing an onsite natural gas based power generation facility. Ormet estimates that an additional 600 people will be affected under the existing WARN notice. “The economic impact of PUCO’s decision is simply a restructuring of the existing economic incentives already pledged to Ormet for maintaining the jobs and does not address the continued rate increases from AEP. It is not sufficient to maintain, let alone increase, operating levels at Hannibal and begin construction of an onsite power plant.” said Mike Tanchuk, Chief Executive Officer and President of Ormet Corporation. Ormet was forced to file for bankruptcy on February 25, 2013 due to historically low metal prices and exceedingly high and uncontrollable power costs.

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