NEW HAVEN, W. Va.--(BUSINESS WIRE)--Felman Production, LLC (“Felman” or the “Company”) today announced that it will immediately cease operations at its New Haven, West Virginia facility for an expected period of three months due to continuous challenging ferrosilicomanganese market conditions. During this period, the Company’s in-house slag processing unit will remain operational.
As previously announced by the Company on May 17, 2013, the combination of the decline in prices for silicomanganese over the past several months and the continuing increase in manufacturing costs, such as electricity, led Felman to temporarily shut down one of its furnaces starting May 31, 2013 and to reduce its workforce. Since the economic and market conditions continue to deteriorate, the decision to cease operations of all of its three furnaces immediately was difficult, but inevitable. Within the next two months, Felman plans to reevaluate market conditions to determine whether operations will resume earlier or if the plant will remain closed for an additional period of time.
Felman, which employs 211 individuals, produces ferrosilicomanganese, an essential deoxidizer and alloy additive used in the manufacturing of steel. Notice of the closure has been given to employees, vendors and customers in an effort to make the transition as smooth as possible. While no layoffs are expected during the first two months of closure in compliance with laws and ongoing maintenance activities, the Company anticipates working with the appropriate state and union officials to facilitate unemployment and other related benefits for those employees impacted by the decision to keep the plant closed for a longer period of time.
“While it pains us to make this very difficult decision, after exploring a variety of options we concluded it is no longer economically viable to operate in the current market environment,” said Mordechai “Motti” Korf, Chief Executive Officer of Felman’s parent company, Georgian American Alloys, Inc. “This decision is in no way reflective of the skilled and dedicated workforce Felman employs, but rather the economic conditions that have severely hindered our ability to remain operational.”
About Felman Production, LLC:
Founded in 2006 and headquartered in New Haven, WV, Felman Production, LLC is a leading producer of high-quality ferrosilicomanganese, an essential deoxidizer and alloy additive used in the manufacturing of steel. By utilizing multiple furnaces, which operate around-the-clock, the company produces approximately 105,000 metric tons of silicomanganese annually at its 190 plus acre facility. Felman Production’s products are distributed to steelmakers across North and South America through its sister company Felman Trading, Inc., an international ferroalloys trading company. Felman Production is one of only two companies in the United States that produces critically important silicomanganese. Felman Production is a wholly-owned subsidiary of Miami-based Georgian American Alloys, Inc. For more information, please visit: www.gaalloys.com