Mining Woes Hit Duluth Manufacturer

Mining Troubles Hit Duluth Manufacturer

Sorry, this video is no longer available

A few years ago ME Elecmetal in west Duluth finished its $12 million dollar expansion during a time when business was booming.

But that’s no longer the case for the foundry which makes steel and iron castings.

The downturn in the mining industry is hurting their business.

In the last 6 months the plant has had two rounds of layoffs and scaled back on its operations.

“I don’t like seeing people laid off but they understand it, they’ve been through it,” Duluth ME Elecmetal manager Bill Grau said.

Grau told FOX 21 late last year they started experiencing drastic reductions in orders from mines in Canada and on the Iron Range who were trying to maintain their costs.

He says business for the West Duluth foundry has gone down about 30%, they’ve had to lay off 21 of their employees and go from a three to a two shift operation.

“Our sales force is out there actively trying to find work,” said Grau. “The work that we are able to secure is international sales, not so much in the U.S.” But we’re hoping to pick up some more international work that will fill in that gap.”

Plant officials also tell FOX 21 their largest customers are copper based.

So commodity prices dropping on the metal has decreased their business.

Elecmetal staff says it’s too early to tell if there will be any more layoffs or operational changes, but they remain hopeful things will turn around.