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One of nation's only aluminum smelters set to close in Missouri Bootheel

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Leroy N. Soetoro

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Jan 31, 2024, 3:16:10 PMJan 31
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https://www.ksdk.com/article/money/business/aluminum-smelter-close-
missouri-bootheel-shut-down-layoffs/63-3b213c88-8707-4353-bed6-
39aa21666a35?ref=exit-recirc

MARSTON, Mo. — One of the nation’s last primary aluminum smelters, which
employs more than 400 workers in the Missouri Bootheel, will reportedly
close its doors.

The Magnitude 7 Metals plant, in the southeast Missouri town of Marston,
announced Wednesday it would curtail operations, according to Industrious
Labs, an industry analysis group. In a press release, Industrious Labs
said the plant represents about one-fifth of the nation’s aluminum
production.

Sen. Jason Bean, a Republican from Holcomb who represents New Madrid
County, said his office received no advanced warning that the closure was
coming.

“It’s absolutely devastating to our area,” Bean said Thursday afternoon.
“Just awful.”

Clean energy groups, including Renew Missouri and the Sierra Club, blamed
the closure on the smelter’s dependence on fossil fuels. James Owen,
executive director of Renew Missouri, said the plant’s loss “cannot be
overstated.”

“This is devastating news for Missouri and the Marson community,” Owen
said in the release. “The smelter provided a lifeline to the entire
community, providing both good union jobs and taxes to the local economy.”

Missouri House Minority Leader Crystal Quade, a Springfield Democrat who
is running for governor, quickly filed legislation Wednesday in an effort
to save the smelter.

“As we all saw during the COVID-19 pandemic, local and domestic supply
lines are essential to keep our economy functioning normally,” Quade said.
“Keeping this smelter open saves jobs and ensures Missouri serves an
integral role in keeping America safe, secure and prosperous.”

U.S. Sen. Josh Hawley wrote to President Joe Biden Thursday, urging him to
use the Defense Production Act to keep Magnitude 7 Metals open because of
aluminum’s use in planes, cars, solar panels and military equipment.
Hawley said doing so would “preserve good-paying union jobs and safeguard
national security.”

“Not only is this development a devastating blow to working families and
good-paying union jobs in my state,” Hawley wrote to Biden, “but it
directly threatens the national economic security of the United States.”

A local TV station in New Madrid County reported workers at the aluminum
smelter had received a letter saying “most employees will no longer be
required after January 28.” The letter says, however, the plant will
continue looking for investors and “look for ways to restart the smelter
in the future.” Circumstances that led to the closure “were not reasonably
foreseeable,” the letter claims. It blames recent cold weather for
severely impairing the plant’s operations.

However, Quade’s chief of staff, Marc Powers, said in an email that the
plant’s owner Matt Lucke confirmed the coming closure in a meeting with
Powers and members of Gov. Mike Parson’s staff more than a month ago. And
Quade wrote to Parson in November about the possibility of a closure if
the plant didn’t find a buyer.

But the Magnitude 7 closure was not listed among layoff notices listed on
the Missouri Office of Workforce Development’s website under the Worker
Adjustment and Retraining Notification, or WARN, Act. The law, requiring
employers to provide notice 60 days before mass layoffs, exempts companies
in cases where layoffs arise from “unforeseeable business circumstances.”

Lucke declined to comment. Parson’s office could not immediately be
reached for comment.

Magnitude 7, which acquired the plant from Noranda Aluminum in 2018, was
under a consent decree with the state — along with a nearby coal-fired
power plant — for sulfur dioxide pollution.

Because of the two operations, part of New Madrid County had triple the
limit of sulfur dioxide in the air, putting it out of compliance with
Environmental Protection Agency standards. The compound, a component of
acid rain, can exacerbate breathing and heart issues.

Magnitude 7 had intended to build a $7 million, 213-foot stack to
dissipate emissions concentrated in New Madrid County.

Missouri lawmakers last year included an $8.5 million loan in the budget
for Magnitude 7. The loan raised constitutional questions, and Gov. Mike
Parson, a Republican, vetoed that line in the budget.

Quade’s bill is an attempt to lower energy costs for the smelter.
Electricity is the largest single cost to aluminum smelters, according to
a 2022 Congressional Research Service report.

The bill would encourage electric utilities to add more renewable and
natural gas energy to its portfolio to lessen its dependence on coal. It
would also allow a third-party renewable energy provider to generate
electricity onsite and provide it directly to the smelter.

This story was updated at 4:15 p.m. Wednesday to include comments from
U.S. Sen. Josh Hawley.


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Bob La Londe

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Feb 1, 2024, 4:23:42 PMFeb 1
to
With the still standing Trump tariffs on imports this will drive the
price aluminum extrusions sky high. It could well put me out of
business. The big shops buying truckloads and train cars of metal will
see a direct proportional increase, but us little guys to whom
600-1000lbs is a big order will take it up the @ss. The distributors
and metal yards will see it as an opportunity to jack prices to the
little guys again.

--
Bob La Londe
CNC Molds N Stuff


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