Ormet Reducing Operations at Burnside Refinery
COMPANY CONTINUES TO EXPLORE STRATEGIC ALTERNATIVES
HANNIBAL, Ohio -- September 11, 2012
Ormet Corporation ("Ormet") announced today it is issuing WARN notices to 250
employees at its Burnside, Louisiana alumina refinery primarily due to the
already reduced operating level at Ormet’s Hannibal, Ohio aluminum smelting
operation. The Company continues to actively pursue alternatives with the
State of Ohio and AEP to mitigate the impact on Ormet of the recent PUCO
rulings in the AEP Electric Security Plan (ESP) rate case finalized on August
8, 2012. The sizable impact of this ruling and the dramatic increase of the
cost of electricity in Ohio over the past several years, in addition to the
current aluminum market, have forced Ormet to significantly downsize its
operations while exploring strategic alternatives. "We are still hopeful that
we can all find short and longer term solutions to the substantial increase in
our power costs and save these jobs," said Mike Tanchuk, Ormet's CEO.
Separately, Ormet also announced that it has retained Evercore Partners to
assist the Company as it continues to explore strategic alternatives.
ABOUT ORMET: Headquartered in Hannibal, Ohio, Ormet Corporation is a major
U.S. producer of aluminum. Ormet employs approximately 1,000 people from
across Monroe County, Southeastern Ohio, and parts of West Virginia. Its
aluminum smelter has an annual aluminum production capacity of approximately
271,000 metric tons. Ormet also operates an alumina refinery in Burnside,
Louisiana producing approximately 540,000 metric tons of alumina which is a
primary raw material in the production of aluminum. The Burnside refinery
employs approximately 250 people. For more information, visit Ormet website at
This press release contains forward-looking statements within the meaning of
the federal securities laws. Such statements are based on current
expectations, and the actual results and the timing of certain events could
differ materially from those projected in or contemplated by these
forward-looking statements due to a number of factors. Readers are cautioned
that Ormet's business is, and the forward-looking statements contained in this
press release are, subject to numerous significant risks and uncertainties.
These risks and uncertainties include, among others, those discussed in Ormet
15c2-11 information and disclosure statements for the year ended December 31,
2011 and the quarter ended March 31, 2012 (copies of which are available at
Ormet's website at www.ormet.com), and risks associated with Ormet's ability
to operate with current electricity rates and low metal prices.
James B. Riley, 740-483-2602
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