WARREN, Ohio - Just as the economy in the Valley is turning around, a Trumbull County steel plant announces that it is closing.

RG Steel bought and took over the plant in Warren from Severstal in March of last year. The company had high hopes at the time saying in a press release on March 31, 2011, "We have the facilities, we have the capital, we have the people, and we have the will to succeed."

But now less than 14 months later the company is idling the plant and laying off nearly all of the 1,000 workers here in the Valley.

A company spokesperson tells 21 News that construction is one of their key markets and it's not rebounding like they expected. But they're also having major problems with financing, saying in a press release on Thursday, "There is continued uncertainty regarding the outcome of discussions with our lenders as to the required level of funding to support working capital necessary to sustain business operations."

For now, the company is not permanently shutting the plant down, but there is no timeline on how long is will be idled and no guarantee it will ever be brought back online.

They're looking at alternatives including the selling of the facility.

In a written statement the United Steelworkers Union said, "Our union is continuing to work closely with RG Steel management to improve the company's liquidity during this process."

RG Steel employees contribute a significant amount of income tax to the city of Warren and possibly more importantly they are the city's largest water customer.

In a statement Warren's Mayor Doug Franklin said, "I look forward to working with RG Steel and the United Steelworkers toward a resolution. We also look forward to working with our regional partners to minimize the impact of this closing on the families of the region."

The layoffs are expected to begin on June 4th and should take about two weeks to complete. A very small workforce will remain at the plant for the protection of the facility and the equipment.