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Restructuring At Sparrows Point Could Cost Jobs

Union that represents 2,500 Sparrows Point steel mill workers says plant's Russian owners' proposed restructuring could affect nearly a third of the work force.

DUNDALK, Md. (AP) -- The union that represents 2,500 Sparrows Point steel mill workers says the plant's Russian owners' proposed restructuring could affect nearly a third of the work force.

John Cirri, president of United Steelworkers Local 9477, said Thursday that Russian steel company Severstal's restructuring proposal details different ways about 580 jobs could be affected, including reductions, retirements or transfers.

Severstal bought Sparrows Point last year in an $810 million deal and it's working out what to do with its five U.S. plants, which have lost significant business because of the economic downturn.

Cirri says Sparrows Point is making about 8,000 tons of liquid iron a day and has the capacity to make 10,000 to 10,500 tons. He says any decisions on job losses would have to be negotiated with the union.