The McLouth Steel plant is owned by Crown Enterprises - one of the companies owned by Detroit businessman Mattie Moroun.
In January, state officials issued multiple violations after contractors for Crown failed to properly remove siding that contained asbestos, among other incidents.
This week, the state sent a second notice of violation after witnessing a large cloud of dust moving off the site during an oven demolition.
Asbestos particles can cause serious illness when inhaled. Crown Enterprises hasn't issued a statement yet.