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Weirton Looking Ahead

2010 full of both challenges and opportunity for city

By IAN HICKS
POSTED: December 29, 2009

Article Photos


WEIRTON - For many in Weirton, the past 10 years was a period they'd just as soon forget.

On Jan. 1, 2000, Weirton, West Virginia's seventh-largest city, was home to 20,411 people. And while it operated with a significantly reduced work force from the more than 14,000 it employed at its peak, Weirton Steel Corp. still counted itself among the state's largest employers with more than 4,000 workers.

Ten years later, Weirton's population has fallen to 18,842, according to the U.S. Census Bureau's most recent estimates - a decline of about 8 percent. Faced with pressure from foreign steel imports, Weirton Steel Corp. filed for bankruptcy in 2003 and was later acquired by International Steel Group and then Mittal Steel. In 2007, Mittal merged with Arcelor, forming the Luxembourg steel giant ArcelorMittal under whose auspices the Weirton tin mill now operates, with a staff of about 1,000.

With all those factors, officials are faced with the challenge of revitalizing a city with declining population and property values amid a nationwide economic recession. All things considered, City Manager Gary DuFour said Weirton has "fared pretty well" in rolling with the economic punches.

"Given what happened with the economy ... we managed to hold our own," said DuFour. "We've been working hard to adapt to the situation we're presented with."

That situation forced the city to slash expenditures from fiscal 2009 to the current fiscal 2010 by $768,000 including the layoffs of five employees. At the same time, the U.S. Environmental Protection Agency mandated Weirton reduce the amount of harmful materials in its drinking water supply, which led to a $4.9 million upgrade to the city's water treatment plant. As a result, city water customers are now paying $4.50 per 1,000 gallons of water - 51 cents more than at the beginning of 2009.

Still, DuFour commended city leaders for completing several projects this year "that have been beneficial to the community." Upgrades to Penco Road, he noted, included paving, a new drainage system and sidewalks that make the thoroughfare "more pleasing to the eye and more accessible to pedestrians."

Other positives, DuFour said, include the Project Main Street initiative, to which City Council earmarked up to $15,000 in funding this fall. Started by Mayor Mark Harris, the project allows Main Street businesses to spruce up their appearance by repainting their exteriors, paying only the cost of labor as the city picks up the tab for paint.

He also pointed to the ongoing construction of the Village at Colliers Way retail development, the progress of a new Super Wal-Mart on Three Springs Drive expected to open in 2010 and the relative stability of conditions at ArcelorMittal over 2009 as high points of the past year.

This year also saw progress toward revitalizing the downtown area with the opening of two new restaurants in the Fujiyama Japanese Steakhouse and Tudor's Biscuit World. Valley Ventures Inc. also purchased the Magnone Building on Main Street, with plans to turn the decades-old structure into a commercial center, and several dilapidated houses near the west end of Pennsylvania Avenue were demolished this year in hopes of using the space to smooth out a dangerous curve in the road.

However, DuFour said not everything on the city's wish list was completed.

"We had made a major push for replacement of the Colliers Way interchange bridge (off U.S. 22)," he said.

DuFour noted that span is aging but important with its proximity to Weirton Medical Center and the future Village at Colliers Way. "We hope it moves up the (West Virginia Division of Highways') priority list," he said.

DuFour believes 2010 will be "a time of some challenge and opportunity" for Weirton. "There probably will be more impacts we're going to have to take into account as far as tax losses," he said, noting falling property values and declining population will lead to less revenue by way of property taxes, municipal service fees and police and fire service fees.

DuFour hopes to use some leftover money from the Penco Road project in the coming year to do similar work on Three Springs Drive.

"We want to try and improve access for visitors who may want to walk to retail outlets," DuFour said.

He looks for the city in 2010 to attract small manufacturing enterprises and work with ArcelorMittal to bring developers into the dozens of unused parcels of property the corporation currently owns.

Next year, DuFour also would like to see progress on port facilities in the city to take advantage of Weirton's location on the Ohio River. He said there's been talk of an intermodal transportation center along the river that would allow for better access for cargo to nearby road and rail systems.

 
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View Comments: | 1-13 | Post a comment
oldsteelmaker
12-31-09 1:09 PM
In 2007 the US had the cheapest steel in the world; we are still one of the lowest cost suppliers. China has a lot of capacity, but it is not necessarily cheap capacity. No iron ore, for starters. LOTS of shipping costs, both to and from the mills.

Oh, and that 300 million tons capacity? About a third of that would make Weirton look modern. There's about 50 million tons worth that the central government has been trying to close for years, but the owners, mostly high level Party members and Army generals, won't cooperate.

Getting back to the real point, Weirton's management blew their chance, and it's not coming back. If WP had build a cold mill instead of the EAF, they might have made it. They didn't, and they didn't.

This is the new reality. Small plants dependent on the market. Get used to it.

oldsteelmaker
12-31-09 1:00 PM
Ellis:

Somehow you think the industry only exists becaues it's propped up by heavy tariffs, and artificially maintaining high prices. Hogwash. For starters, there is still serious domestic competition. Do you really think Nucor props up the price to keep US alive?

Sheet steel is going for about $550 a ton. Adjusted for inflation, that's less than half what it sold for in 1980. The 100,000 figure you mentioned was 500,000 thirty five years ago, and they can make more ship tons than in the 70s.

The mills have deliberately curtailed production to keep the price up a little, so it should be an ideal time for the importers. So where is the flood of inexpensive steel? Total finished steel imports down 45%, 2008 to 2009. Chinese imports down 68%(Dept of Commerce).

Show me an industry that is being ruined directly by the "high" price of steel.

EllisWyatt
12-30-09 6:25 AM
oldsteelmaker

A Dept. of Commerce study showed that, even in the event of all-out war, we had 3 times as much capacity as needed.

More than 80% of steel imports have always had tariffs on them.

US steel companies received billions in direct subsidies, tax breaks, loans, etc. in addition to the billions in health and pension obligations that were dumped on taxpayers.

The biggest problem is that there are less than 100,000 Americans working in the steel industry while there are at least 5 million who work for companies that use steel for their products.

You cannot destroy 5 million or more good paying jobs to subsidize 100,000 steel jobs.

BTW, Nucor can compete with anyone, anywhere in the world but they are smart enough to cry about imports and take their handouts.

oldsteelmaker
12-30-09 3:03 AM
Ellis, you are right about Weirton Steel. It was a piece of junk, with nothing but a nice tin mill as a positive. Why do you think National Steel basically gave the place away?

I remember hearing gripes from rank and file guys that lived next to Weirton hourly workers. They got bonuses, why didn't we? Of course, a grand bonus for 10,000 workers meant the next time Weirton needed $10 million for something, it wasn't there, but no one seemed to care.

Well, the empty stores and shops are why you should have cared.

oldsteelmaker
12-30-09 2:57 AM
Ellis, that figure is bogus. It ignores a bunch of facts about the world steel business. For instance, in the 80s, the government ignored dumping complaints about the Japs. They cited how NKK and Nippon had much more efficient plants, and lower manhours per ton. True, if you accepted their numbers. Small problem, they were lying.

Try and find a Japanese coil in this country now. They can't compete with us.

Next point, the Brazilians. Brazil owed our banks big, and much of it was for new steel mills. Solution? Ignore dumping, because banks have more clout with Congress than we do.

In 2007 the US had the lowest price steel in the world. Since I buy steel to make parts now, messed me up a bunch. How do you reconcile that with your figures?

Most of the steel industry worldwide was partly if not fully government owned for most of the last three decades. Prove to me that destroying a significant domestic industry would benefit the economy.

EllisWyatt
12-29-09 10:07 PM
Weirton Steel died because it was owned by union employees, because it was poorly run, because it incurred large transportation costs and because of sabotage and theft on the part of the employees.

If you don't like Wal-Mart, don't shop there.

Speaking of subsidies, US taxpayers have subsidized the US steel industry to the tune of at least $150 BILLION.

Weirton is dead. It was a town from another area. Like Wheeling, its' population will continue to decline.

formerohvalleyresident
12-29-09 8:16 PM
With the "big thinker" ideas here, I am surprised Weirton isn't 4,000. Wal*Mart is the only thing that keeps rust bowl towns from blowing away in the wind.

Weirton 1950: 28,210; Weirton 2009: 18,748. Wal*Mart in 2010 did all of that? PFFFFT!

How's that Hoax and Chainz thing working?

ChipCarte
12-29-09 4:59 PM
OH BY THE WAY CHECK FOR LEAD PAINT AND OTHER HAZARDS TO YOUR FAMILY WITH ALL THE MERCHANDISE THATS COMING OVER FROM THESE COUNTRYS. MILLIONS OF DOLLARDS OF DRY WALL CAME FROM CHINA AND NOW HOMEOWNERS CAN'T EVEN LIVE IN THEIR HOME AND IS CAUSING SICKNESS, WHY WASN'T THE PAINT AND THE DRYWALL CHECKED BEFORE ALLOWING CHINA SENDING IT OVER HERE CAUSING ALL OF THESE PROBLEMS. IT MAKES YOU WONDER IF THERE GOVERNMENT IS LOOKING AFTER US.

Wheeldog
12-29-09 4:45 PM
A new big box store is not a sign that the local economy is improving. These stores do not bring money into the valley; they take it out. On a net basis, these franchise mega stores can not make money unless more money is coming in than is going out. The only way that such establishments could truly add to the economy is for them to be fully based in the valley. Mills, factories and locally located special services, on the other hand, manufacture products or provide services that are purchased by distant customers. This really brings money INTO the valley. On a net basis, more money has to flow into the valley than is going out if the economy is to actually improve.

ChipCarte
12-29-09 4:42 PM
YOU JUST HELPED CHINA, MEXICO, AND ALL OTHER OUTSIDE COUNTRYS OTHER THEN THE USA. TRY AND FINE SOMETHING THAT WALMART SELLS FROM THE USA GOOD LUCK.

PCGS70
12-29-09 12:11 PM
Good luck Weirton.

Highland
12-29-09 8:42 AM
Oh yay, more unionist libel about Walmart. Thank the unions for helping destroy the steel industry, hoopie, then get back to us.

wvhoopie
12-29-09 7:04 AM
The high point is getting a Wal Mart. What does this say about the Ohio Valley? The high point is a retailer than dumps its health care costs on the State of WV, who pays low wages and violates labor law like it doesn't exist. How much tax subsidies did Weirton give Wal Mart so they can violate our laws and dump their employee costs on West Virginians? Unreal.

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