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Ormet Moves To Full Shutdown

CEO blames PUCO for not enough help

October 5, 2013

HANNIBAL — Mike Tanchuk blasted the Public Utilities Commission of Ohio Friday for not further reducing Ormet’s electric bills as he announced the company would cease all operations by next wee....

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(79)

VRWC5528

Oct-10-13 1:41 PM

"vrw:lets take a look at what did happen to the millions that did go into Wheeling. Where did it go. Who was in charge?"

Well, since you ask who was in charge and you are talking about WV, I'm guessing the majority of the money was squandered by those kind of people that you support. In other words, it was squandered by the Democrats that have owned WV for the last 75 years.

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atoddh

Oct-06-13 11:54 PM

the folks in the Ormet area probably shop at Highlands; as did the steel workers and do the coal miners. These value added jobs will be gone soon. Each of these manufacturing jobs supports 5/7 service jobs such as retail. The future looks very dim for the OV. Large gas owners will do well.

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electrichead03

Oct-06-13 6:34 PM

Can't get much lower wage. .nowbody else will work! Its dangerous and dirty.unless you hsve done the job at ormet ..you cant judge! I don't kmow where people get off saying we make so much money! I have yet to see it and I have worked there for 16 years! Our wage would not put a dent in that bill unless we work for nothing! How many on this page have done this job? I would like to kmow!

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atoddh

Oct-06-13 5:18 PM

old has a point. Ormet would have to start over non union and no legacy costs to reinvent itself. The electric costs would have to be compensated for by much lower labor and no pensions.

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atoddh

Oct-06-13 5:16 PM

vrw:lets take a look at what did happen to the millions that did go into Wheeling. Where did it go. Who was in charge?

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VRWC5528

Oct-06-13 10:12 AM

"vrw: Byrd and Mollohan had seniority on Appropriations .Accordingly they were able to steer projects to WV that would have gone elsewhere. They are now.

"My point is: the money that did go into Wheeling for job creation was squandered.'

and all that money did squat, so they should have stolen more of the taxpayer money?

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dyingov

Oct-05-13 10:52 PM

Ormet built and owned 2 of the units at Kammer (AEP) plant until 2001 and then sold them to AEP. That was a huge mistake!

oldsteelmaker, going to need about 540MW capacity in generation for your daily use!

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BigMike

Oct-05-13 9:36 PM

Old is very correct. Buyers are going to shy away from unstable suppliers.

Not really, the majority of sales were to commodity traders.

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BigMike

Oct-05-13 9:23 PM

OSM wrote: Ormet COULD come back.

Going off the grid has it's own risks, in terms of reliability.

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dyingov

Oct-05-13 9:12 PM

ragnar, Mark Cuban 2 times in one day! He made his money in Texas and then in Indiana! Yahoo bought his company in 1999 (dot com bubble dayz) for 5+ billion or about $10,000 per user. Yahoo lost it's as s. That is how the cookie crumbled. Currently he is squirming in court about some insider trading scam he pulled-off! Just another hero of the American culture of scammsters.....He once made over $1,000 on a chain letter he started!

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oldsteelmaker

Oct-05-13 8:41 PM

..."Or not, that USWA brainwashing goes deep."

You really need to turn on the overflow indicator.

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oldsteelmaker

Oct-05-13 8:40 PM

Ormet COULD come back.

My mill was closed for a decade. The new owners started small, and built up the business. But it requires two things. Low costs, and a decent economy.

We have neither. Tell the union guys they have to take $12 to 15/hr to start, and work a lot of overtime and they will flip you off and go home.

And the electricity, the biggest cost of a potline, has to be at a market price. If I had the cash, and was feeling brave, I would locate some of the emergency generator sets on barges, bring them to the plant, and make a deal with the nearest gas well operator. Run those and build a permanent plant, then tell the PUCO to drop dead. If I make my own power, they have nothing to say about it.

As for labor, offer the Nucor model. $10/hr base pay with benefits, and bonuses for meeting or exceeding targets. Considering the average guy at Nucor makes around 15 to 20k a year more than a US Steel union worker, that may wake up a few minds. Or not, that USWA

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atoddh

Oct-05-13 8:21 PM

folks: The intent of the State grant to Ohio County for the Fort Henry Industrial Park (now Highlands)was for light manufacturing development; not low paying retail jobs. With fewer and fewer jobs in the OV retail will dry up. The money could have spawned many well paid value added jobs.

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atoddh

Oct-05-13 8:17 PM

Old is very correct. Buyers are going to shy away from unstable suppliers. Ormet is doomed.

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atoddh

Oct-05-13 8:15 PM

vrw: Byrd and Mollohan had seniority on Appropriations .Accordingly they were able to steer projects to WV that would have gone elsewhere. They are now.

My point is: the money that did go into Wheeling for job creation was squandered.

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BigMike

Oct-05-13 8:15 PM

"Now when ormet shuts down will aep raise the peoples electric bill or are they going to lay off "

AEP is now asking for a $2.00/month charge for an unspecified period (perhaps eternally) to cover installation of 900,000 Smart Grid meters. Meters which will reduce cost for AEP by eliminating meter readers, providing real time usage data and variable rate billing. Variable rate billing should be a real cash cow for them.

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Ragnar

Oct-05-13 7:52 PM

What does West Virginia have to show for the billions wasted?

Let's say WV spent the same amount of money as Innovation Works ($11k per job) to create good paying ($50k or more) private sector jobs.

A $1 billion "investment" would have generated 90,909 jobs generating state income taxes of roughly $270 million per year, to say nothing of corporate income taxes, property taxes, charitable contributions, indirect jobs, etc.

WAKE UP, WEST VIRGINIA!!! You could have MAJOR success and you have ****** away a boatload of money on pork projects!!!

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Ragnar

Oct-05-13 7:48 PM

Between 1981-2005, West Virginia received $228 billion more in federal spending than its' citizens paid in federal taxes.

Billions of taxpayer dollars were wasted on government jobs, non-profits and pork barrel projects.

Contrast this with Innovation Works in Pittsburgh. In 2011, IW invested $5 million in seed money into private companies that created 454 high-skill jobs in robotics, tech, etc. ($11k per job).

IW invested $50 million in local companies over 12 years. These companies created thousands of good paying jobs and attracted $1.2 billion in private follow on funding.

Mark Cuban got his start in Pittsburgh. Meakem Becker, a VC company started by Free Markets founder Glen Meakem, invested in Kiva Systems, which Amazon just purchased for $775 million. The co-founders of Adobe, Sun Microsystems and You Tube are from Pittsburgh, as is the founder of Groupon and the founder of Lycos.

IW funded companies include Medrad, Ariba, Ansys, Ansoft, McKesson, II-IV,etc.

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oldsteelmaker

Oct-05-13 7:03 PM

Thinkin' dead on. It takes a heap of electrons to make a pound of aluminum in a potline. Power is a larger cost than labor for an aluminum smelter.

But that's okay. ztodd will bring in gobs of money for guvmint work.

BTW, z, you might want to consider this before you claim Wayzata should just step in and take their lumps for the long-term benefit. Ormet makes raw aluminum. All of their product goes to other processors that remelt and/or form the product. Sales are done by long-term contract. This is not a retail shop, where people call for some stuff for next week. As soon as this plant got in trouble, the customers started looking for other sources, and within minutes of the shutdown announcements buyers started signing contracts with other smelters. Even if Wayzata announced tomorrow they were taking over, there would be a big gap in the production with huge costs involved.

Why do you think Yorkville is still closed? Ohio Coil signed contracts with other mills

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oldsteelmaker

Oct-05-13 6:52 PM

z, you said Wayzata should buy the place and run it at a loss for the next two to four years, if they really believed in it's long germ viability. would YOU take a chance like that? I doubt that very, very much. As long as you are at the whim of political pinheads with no common sense on regulatory boards, stupid moves like this will continue.

And I would like to see an analysis of just how much a company this size contributes to the local economy, and what the cost for the requested rate subsidy would have been. Ask the city council in Mingo, Martins Ferry or Yorkville what they would do to have WP running again.

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UNCOMMONSENSE

Oct-05-13 6:23 PM

Still waiting for all those windmill plants Barry promised!

Oh right that was just another lie!

Keep in mind that the next bridge you drive over, the next plane you fly on, and the next thrill ride you get on may kill you and your family because it is now built with poor quality Chinese steel and aluminum!!

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VRWC5528

Oct-05-13 4:30 PM

Atodd, why do you keep giving credit to crooked and racist politicians like Byrd and Mollohan, for wasting taxpayer money? And then you have the audacity to call it "their money"

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VRWC5528

Oct-05-13 4:28 PM

"Byrd's money was squandered in Wheeling ;with no results" It wasn't Byrd's money, it was ours

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VRWC5528

Oct-05-13 4:27 PM

"The I79 area is growing. The FBI center funded by Byrd is a huge employer(5000); as one example."

Byrd did not fund anything. The US taxpayer funded it. Why do you insist on idolizing the ex-wizard of the WV KKK?

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Brian26003

Oct-05-13 4:06 PM

Now when ormet shuts down will aep raise the peoples electric bill or are they going to lay off

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