The company will not be opening a $1 billion plant at Haverhill.
In May, the Portsmouth Daily Times reported that, according to New Steel International, MMK was not likely to build the plant.
Now, Steel Business Briefing is announcing that MMK is all but completely shutting the door on plans for the plant.
MMK confirmed its decision to Steel Business Briefing. The company cited low steel demand.
Oleg Fedonin, CFO of MMK speaking on a plant tour in Russia said “It seems that very many plants worldwide are struggling. European governments are cutting costs and halting infrastructure and social projects in their efforts to battle budget deficits. Hence, orders for steel products will hardly show a dramatic growth. We do not see fit to invest into this plant at the moment.”
While he didn’t rule out the possibility of returning to the project, he did say it seems unlikely.
“We never stopped talking to MMK, but they had their own problems over there, as we all know, and things got very very difficult for them,” John Schultes of New Steel International, told the Times in May. “But they never said no either. So I think that was the point the governor (Gov. Ted Strickland) was trying to make in the statement that it was tough to talk to them. But at the same time they never said no.”
Mark Barbash assistant director of the Ohio Department of Development said his agency will continue to pursue opportunities to develop the Scioto County site. He said MMK had not communicated its plans with Ohio officials.
That echoes a statement made by Shultes in May.
“We had been working on a plan B and a plan C for the last year or so, and so we are making progress on both,” Schultes said. “Things right now are intensely moving forward.”
Schultes appeared to be positive there will be more about the plant in the weeks and months ahead.
“There will probably be a few more pages coming in the next coming months,” Schultes said.
Shultes said Friday he would probably have more information in about a month.
MMK announced the project in 2007 fueling hopes for new jobs to be injected into the economy.
In 2008, the Ohio Environmental Protection Agency awarded New Steel International air and water permits to build in Haverhill, after two public meetings in Franklin Furnace. The EPA further helped the company by giving it the go-ahead to purchase Particulate Emission Offsets from the former New Boston Coke plant, but it never broke ground and made no public comments about the plan status
The plant has been projected to provide approximately 500 jobs.
Frank Lewis may be reached at (740) 353-3101 Ext. 232 or email@example.com