ASHLAND — Tuesday was not a good day to be a Steelworker in northeast Kentucky.
“It’s pretty somber around here,” said Chris Lynd, who works in the maintenance department at AK Steel.
Workers at the plant, almost all of whom face indefinite layoffs, have been anticipating bad news for some time, he said. “No one was shocked.”
Rumors of a shutdown have been making the rounds for days, both in the plant and in the area. Community Trust Bank Vice President Larry Jones said an AK employee who is a bank customer mentioned it Friday and when he contacted his corporate office in Pikeville the word had reached them as well.
“There’s nothing good about it. I really hate it,” he said. “Jobs making $40,000, $50,000 each, it doesn’t take a genius to realize the economic input on the community.”
The shutdown “is a very localized example of the domino effect” resulting when a major industrial sector hits the skids and affects other industries, said Ashland Alliance President Jim Purgerson.
In this case, AK sells much of its product to the auto industry, which has seen plummeting sales in recent months.
The overall economy is the worst Purgerson has seen in his 30 years in the economic development business and the AK situation is “devastating,” he said.
Uncertainty about the duration of the shutdown is worrisome, he said. “My real concern is, how long? ... My fear is it will take longer rather than sooner.”
Effects of the shutdown will spiral down, Jones said. He expects to see some small business clients show declines in their balances and anticipates the same for individual depositors.
“It is terrible news. It will put a damper on an already slow Christmas season ahead,” acting Ashland Mayor Kevin Gunderson said.
However, Gunderson said he remained optimistic about the Ashland Works’ long-term viability.
Effects will be felt across the river as well, said Ironton Mayor Rich Blankenship. Numerous AK employees live in Ironton; they and the city will feel the pain.
“It will affect all of us. It will have a great effect on our businesses,” he said.
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