Magnetation has announced it may close its Minnesota iron ore concentrate plants and rail loading facility, as well as its pellet plant in Reynolds, Indiana, US.

If the shutdown takes place, it is expected around 30 September. Until the closure, the company intends to continue operations as usual. 

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Magnetation said that the move has been done in compliance with the US Department of Labor's Worker Adjustment and Retraining Notification (WARN) Act by notifying local officials and the International Union of Operating Engineers Local regarding production stopping and job cuts.

Warn Act notification will be provided 60 days in advance if there is potential to layoff more than 50 employees.

"We will be working closely with the appropriate governmental agencies to assist any affected employees."

Magnetation CEO Larry Lehtinen said: "While this was a difficult decision, the company believes that, in light of current circumstances, preparing for a safe and orderly wind-down while we continue to seek an alternative to a shutdown is the best course of action to support what is in the best interests of our employees, creditors and other critical constituents.

“As a result, we are communicating the proper notifications to our employees and the communities. We will be working closely with the appropriate governmental agencies to assist any affected employees who would be laid off if this shutdown is implemented."

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In connection with the potential closure, Magnetation has signed an agreement with AK Steel, and its senior secured lenders to cease operations and implement a wind-down process.

In Minnesota, the company has three iron ore concentrate plants in Keewatin, Bovey and Grand Rapids, in addition to an iron ore pellet plant in Reynolds, Indiana.