HANNIBAL, Ohio--()--Ormet Corporation ("Ormet") announced today it is issuing WARN notices to 250 employees at its Burnside, Louisiana alumina refinery primarily due to the already reduced operating level at Ormet’s Hannibal, Ohio aluminum smelting operation. The Company continues to actively pursue alternatives with the State of Ohio and AEP to mitigate the impact on Ormet of the recent PUCO rulings in the AEP Electric Security Plan (ESP) rate case finalized on August 8, 2012. The sizable impact of this ruling and the dramatic increase of the cost of electricity in Ohio over the past several years, in addition to the current aluminum market, have forced Ormet to significantly downsize its operations while exploring strategic alternatives. "We are still hopeful that we can all find short and longer term solutions to the substantial increase in our power costs and save these jobs," said Mike Tanchuk, Ormet's CEO.
“We are still hopeful that we can all find short and longer term solutions to the substantial increase in our power costs and save these jobs”
Separately, Ormet also announced that it has retained Evercore Partners to assist the Company as it continues to explore strategic alternatives.
ABOUT ORMET: Headquartered in Hannibal, Ohio, Ormet Corporation is a major U.S. producer of aluminum. Ormet employs approximately 1,000 people from across Monroe County, Southeastern Ohio, and parts of West Virginia. Its aluminum smelter has an annual aluminum production capacity of approximately 271,000 metric tons. Ormet also operates an alumina refinery in Burnside, Louisiana producing approximately 540,000 metric tons of alumina which is a primary raw material in the production of aluminum. The Burnside refinery employs approximately 250 people. For more information, visit Ormet website at www.ormet.com
This press release contains forward-looking statements within the meaning of the federal securities laws. Such statements are based on current expectations, and the actual results and the timing of certain events could differ materially from those projected in or contemplated by these forward-looking statements due to a number of factors. Readers are cautioned that Ormet's business is, and the forward-looking statements contained in this press release are, subject to numerous significant risks and uncertainties. These risks and uncertainties include, among others, those discussed in Ormet 15c2-11 information and disclosure statements for the year ended December 31, 2011 and the quarter ended March 31, 2012 (copies of which are available at Ormet's website at www.ormet.com), and risks associated with Ormet's ability to operate with current electricity rates and low metal prices.