AIR suspends production

Published 12:00 am Saturday, October 7, 2000

DANIEL TYLER GOODEN / L’Observateur / October 7, 2000

CONVENT – “They have not shut down and have not laid off workers,” commented St. James Parish President Dale Hymel on the suspendedproduction at American Iron Reduction in Convent.

On Sept. 27 the plant suspended it’s production, and a small group ofcontract workers was released, said Theresa Roy, manager of human relations and administration.

The problem derives from the high cost of natural gas, which AIR uses in its iron processing rather than as a heating source. “The price of natural gas istaking quite a toll on us,” said Roy.

The price of natural gas is what drew AIR to St. James Parish; now it’swhat’s hurting them, said Hymel.

While the plant stays idle the 70 AIR employees continue to work and the owners meet to discuss their options. Future production is uncertain at AIR,but all employees are still working, assured Roy.

American Iron Reduction opened the Convent facility January 1998. Thefacility reduces the amount of oxygen in iron pellets from 38 percent to 5 percent oxygen. The high metal/carbon steel is then used by steel companieswhich require the specially produced metal. There are only two other ironreduction companies in the country, said Roy.

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