JEFFERSON CITY, Mo. – In an effort to protect working families in southeast Missouri, Attorney General Andrew Bailey directed a letter to the owner of Magnitude 7 Metals, encouraging him to sell rather than close his plant in Marston, Missouri.
In the letter, Attorney General Bailey writes, “I write to express grave concern over reports that Magnitude 7 Metals intends to close its plant in Marston, MO. My office has also received reports that Magnitude 7 Metals laid off many of its workers on January 28, 2024. If these reports are true and Magnitude 7 Metals intends to remain closed, hundreds of hardworking Missouri families will lose their jobs. The Magnitude 7 Metals plant employs over 500 workers, representing more than Marston’s total population. Also, as one of the nation’s last primary aluminum smelters, producing about one-fifth of the nation’s aluminum, the Magnitude 7 Metals plant is also important to the national aluminum supply. Closing the Magnitude 7 Metals plant indefinitely would have detrimental and far-reaching impact on the people of Missouri and others across the country.”
He continues, “Like Senator Hawley, I am committed to ensuring corporations fulfill their legal obligations. Magnitude 7 Metals is required under the WARN Act to give its employees at least sixty days’ notice before closing. 29 U.S.C. § 2102. Reports suggest that you gave your employees only four. I agree with Senator Hawley that violations of the WARN act require not only giving employees back-pay and benefits, but can also lead to hefty civil fines. In addition to advocating for the enforcement of federal law, I will enforce state law in defense of working Missouri families. Magnitude 7 Metals has legal obligations under Missouri’s environmental laws and regulations.
“Under both state and federal environmental law, Magnitude 7 Metals faces significant fees, penalties, and remedial environmental obligations. Your company will remain liable for all required fees and penalties and be required to address the ongoing and long-term environmental effects of this facility, even if it closes its doors. Moreover, Magnitude 7 Metals, or its successor, would likely face greater cost to resume operation later than it would to keep its doors open now. In short, Magnitude 7 Metals cannot merely close its doors and walk away. I will use the full authority of this office to hold your company accountable and ensure the people of this state are not further harmed by your decision.”
Attorney General Bailey concludes, “My office received information suggesting that you have received offers that would allow the plant to remain open but you have yet to engage with those offers. Refusing to engage with reasonable offers to sell may violate federal antitrust laws. Violating federal antitrust laws can carry both serious criminal fines and steep civil penalties. It is thus paramount that you do everything in your power to either keep the facilities open or sell to an interested party, including a competitor.
“Many Missourians depend on this plant for their livelihoods. Like Senator Hawley, Congressman Jason Smith, State Senator Bean, and State Representative Brown, I urge you to make every effort to reopen the plant, including efforts to engage with reasonable offers to sell. Please accept this notice of intent to enforce state law and seek all financial and environmental restitution owed to the state of Missouri. I will use every tool at my disposal to fight for working Missouri families and ensure that you fulfill your legal commitments to the community of Marston and our entire State.”
The letter can be read here: https://ago.mo.gov/wp-content/uploads/2024.02.16-Magnitude-7-Metals-Letter.pdf