JACKSON, MI – About 140 employees are getting laid off in mid-April at the Jackson location of Gerdau Special Steel North America.

The company announced the move to its employees on Thursday, Jan. 23, and sent a news release detailing the layoffs on Friday. Melting and rolling operations will stop at the 3100 Brooklyn Road plant, although finishing operations will continue there.

The melting and rolling equipment will be maintained, in case a restart is deemed feasible, a Gerdau official said.

“This was an incredibly difficult decision to make because our Jackson mill has operated here for more than 45 years,” said Rodrigo Belloc, Gerdau Special Steel North America president, said in the release. “However, this is an action we must take in order to ensure the overall sustainability of the business.”

The decision is necessary to “rationalize company costs” by allocating product mix to specific plants, the release said. Between Gerdau’s office and mill in Jackson, it currently has about 400 employees.

All employees who are being laid off were allowed to take Friday off to process the news with their family over the weekend – but are still being paid for the day.

“We will do our best to support our employees through this transition and appreciate their commitment," Belloc said.

Gerdau also has manufacturing plants in Monroe and Fort Smith, Arkansas and has a heat treating facility in Huntington, Indiana. The company is the largest steel producer in Brazil – which is where it's headquartered.

While the company is 119 years old, the facility in Jackson opened in 1974 with 42 employees, as MacSteel. Gerdau bought the company in 2007.

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