United Steelworkers object to Ormet selling Jackson, Tenn., plant

By Jeff Pines

Washington, June 24 - The United Steelworkers of America objected to Ormet Corp.'s proposed sale of its Jackson, Tenn., plant, which employs 148 of its members.

Ormet wants to sell the plant and filed an emergency motion to do so. It is willing to either sell the entire facility or sell off parcels. The plant includes 117.42 acres.

The union said it believes the Wheeling, W.Va.-based Ormet is not interested in getting the best price for the plant because its proposed timetable with a July 26 auction would leave little time to market the facility.

The motivation for the emergency motion is that the Army Corps of Engineers plans to close a lock on the Ohio River, which one of the company's plants uses to ship its products to Jackson and other downstream plants. Since the Jackson plant is the company's least profitable, management decided now is the time to sell or shutter the facility.

If no one bids on the Jackson plant by July 26, the integrated producer and marketer of alumina said it will shut the plant down.

Evercore Restructuring LP is marketing the plant and has had several conversations with potential buyers, it said.

The hearing date was changed to June 28 from June 23.

Ormet filed for bankruptcy on Jan. 30. Its Chapter 11 case number is 04-51255.

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