Nov. 13, 2009: Congressman Ryan Advocates for Severstal Warren Facility
(Washington, D.C.) Congressman Tim Ryan today offered assistance to the management of Severstal North America, and outlined the benefits that Severstal provides to the Mahoning Valley and offered his assistance to the company with any efforts to restart the mill in a letter sent to Severstal management. Congressman Ryan also explained to the Severstal management how important their operation is to the local schools and the City of Warren.
Text of the letter is attached below.
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November 9, 2009
OAO Severstal North America
14661 Rotunda Drive
Dearborn, MI 48120-01699
Dear Mr. Kuznetsov:
As U.S. Representative for the 17th District of Ohio, I am writing to express my concerns about your Warren, Ohio facility, and to offer any assistance that I can provide to help secure its future.
Severstal Warren is one of the largest employers in my Congressional District and is a significant contributor to our local tax base. For instance, Severstal pays approximately $1,000,000 annually to the Warren City School’s budget and $600,000 in income payroll and corporate taxes to the city of Warren. Additionally, the city of Warren generates more than $2,000,000 annually from water and sewer fees at the facility. It is further estimated that every 1 job in the steel industry creates an additional 5.3 jobs within the local supply network, so the impact of the facility on the local economy is much broader than Severstal’s direct payroll and tax obligations.
It is my understanding that the Warren operation has an outstanding history of steel production, and remains one of your most profitable and efficient operations. While I certainly recognize that there are many factors that determine which plants are idled, I hope that you will look at your overall operations to determine if your Warren facility would not be able to better serve the needs of your customers and protect your overall market share.
Because of the importance of the domestic steel industry to our nation’s security, Congress included provisions in the American Recovery and Reinvestment Act to stimulate the market. It is my sincere hope that this and other measures will spur the economy and allow the steel industry to receive the same kind of benefits that other sectors have experienced.
Finally, if there are other factors that you believing are impacting your ability to restart your Warren operations that you believe my office can assist with, please contact me directly to arrange a time to talk. Ron Grimes, my chief of staff, can be reached at either 202-225-5261 or Ron.Grimes@mail.house.gov.
Thank you in advance for your consideration of these issues.
Member of Congress