July 05, 2017 04:41 PM
An announcement Wednesday from Mesabi Metallics. Half of their staff have been laid off, in preparation of the acquisition by Chippewa Capital Partners.
According to Mesabi, the layoffs reduce the staff from 50 to 25.
As we've reported, the bankruptcy court has approved Chippewa's reorganization plan. Chippewa is lead by Tom Clarke. The state of Virginia businessman has also taken over the former Magnetation assets, which are now referred to as ERP Iron Ore.
Chippewa and Mesabi are now in the process of implementing the re-organization plan, which is expected to become effective in August.
The statement said that Chippewa is going to use a third party general contractor to complete construction of the mine, which means they need fewer employees to oversee construction and management.
Also, Chippewa plans on having Mesabi share certain functions with ERP Iron Ore.
Mesabi's employees affected by the layoffs are being encouraged to apply with ERP.
No further layoffs are expected.
Updated: July 05, 2017 04:41 PM
Created: July 05, 2017 04:40 PM
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