Magnitude 7 Metals Plant in Missouri to Close, Threatening Jobs and Economy

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ICARO Media Group
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25/01/2024 23h24

In a devastating blow to the community of Marston, Missouri, the Magnitude 7 Metals plant announced its decision to close its doors, putting more than 400 workers at risk of losing their jobs. The plant, one of the nation's last primary aluminum smelters, made the announcement on Wednesday, according to industry analysis group Industrious Labs.

Industrious Labs revealed that the Magnitude 7 Metals plant represents approximately one-fifth of the nation's aluminum production, highlighting the significant impact that this closure will have on the industry. Unfortunately, Sen. Jason Bean, representing New Madrid County, stated that there was no advanced warning of the closure.

Clean energy groups, including Renew Missouri and the Sierra Club, attributed the closure to the smelter's reliance on fossil fuels. James Owen, executive director of Renew Missouri, described the plant's loss as "devastating," emphasizing the contributions it made to the local economy through taxes and well-paying union jobs.

Taking immediate action, Missouri House Minority Leader Crystal Quade, a Democrat running for governor, filed legislation to try and save the smelter. Quade stressed the importance of maintaining local and domestic supply lines, especially in times of economic uncertainty like during the COVID-19 pandemic.

U.S. Sen. Josh Hawley also called on President Joe Biden to utilize the Defense Production Act in order to keep Magnitude 7 Metals open. Hawley emphasized the integral role of aluminum in various industries, such as aviation, automotive, solar, and military equipment, and highlighted the need to preserve union jobs and national security.

Workers at the smelter received a letter stating that most of them will no longer be required after January 28. However, the plant expressed its intention to search for investors and explore possibilities of restarting operations in the future. The letter attributed the closure to unforeseeable circumstances, particularly the severe impact of recent cold weather on the plant's operations.

Contrary to the claims in the letter, it was revealed that the plant's owner, Matt Lucke, confirmed the impending closure in a meeting more than a month ago. Furthermore, Quade had written to Gov. Mike Parson in November expressing concerns about the possibility of closure if a buyer was not found.

Magnitude 7's closure was not listed among the layoff notices on the Missouri Office of Workforce Development's website, as it falls under the exemption of "unforeseeable business circumstances" outlined by the Worker Adjustment and Retraining Notification (WARN) Act.

The plant's acquisition in 2018 came with the responsibility to address sulfur dioxide pollution, which led to a consent decree with the state. Because of the smelter and a nearby coal-fired power plant, New Madrid County exceeded the Environmental Protection Agency's standards for sulfur dioxide, posing risks to public health.

Missouri lawmakers had included an $8.5 million loan in last year's budget to support Magnitude 7, but Gov. Parson vetoed that line due to constitutional concerns. In an attempt to lower energy costs for the smelter, Quade's bill proposes encouraging electric utilities to incorporate more renewable and natural gas energy in their portfolios and allowing a third-party renewable energy provider to directly supply electricity to the smelter.

The closure of Magnitude 7 Metals plant in the Missouri Bootheel not only threatens jobs but also poses a significant setback to the local and national economy. Efforts are underway to salvage the situation, but the future remains uncertain for the community of Marston and its dedicated workforce.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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