Just three years ago both Chrysler and Republic Steel were in dire straights. The recession and complete slow down in auto sales led to over 700 layoffs at Republic Steel's Lorain facility. Chrysler filed for bankruptcy after receiving billions of dollars in federal aid. Chrysler's management was ultimately taken over by Italian carmaker Fiat. So local politicians like Lorain Mayor Tony Krasienko said Wednesday's announcements left him in awe.
Tony Krasienko: We walk a little taller today and we are sitting in our chairs a little taller today.
In Lorain, Republic Steel has committed to an $85 million investment in a new electric arc furnace and supporting equipment. The move will add 449 jobs to a workforce of 489 people. New construction could start in 2012, but only after the company ratifies a new contract with its workers. In Toledo, Chrysler will fill the new jobs in 2013 and invest half a billion dollars in the plant.