O’Neal Consolidates Birmingham Operations
The declining metals market impacts their manufacturing services.
Posted: December 29, 2015
Kelly Poe of AL.com has reported that O’Neal Manufacturing Services (OMS; Birmingham, AL) is consolidating its Birmingham operations, where about 180 people work. Some of those employees may be moved to other OMS facilities elsewhere, or into other jobs at O’Neal Steel in Birmingham. But many will lose their jobs.
The OMS Birmingham space will be repurposed for O’Neal Steel Birmingham operations, which are also owned by OMS’ parent company O’Neal Industries. Most of the Birmingham OMS operations will be moved to Greensboro, NC, by June 2016. Company officials explained that the declining metals market – experiencing the lowest steel prices since 2004 – is the reason for the shift. “We expect the industrial economy to remain challenging at least through 2016. So we have to be smart, efficient and effective to succeed,” said Craft O’Neal, the company chairman and chief executive officer.
O’Neal added that the move will not affect other Birmingham facilities. The parent company and O’Neal Steel’s largest distribution facility will remain in Birmingham. “We have always been a people-first company, so this is a heart-wrenching decision in terms of the people impacted by our consolidation,” noted O’Neal. “Our first concern is doing all we can to help the impacted employees.”
O’Neal is far from the only steel company in Birmingham that has been affected by lower prices: U.S. Steel laid off more than 1,000 workers at its Fairfield facility earlier this year.
Subscribe to learn the latest in manufacturing.
