U.S. Steel to temporarily idle operations at Granite CityArchived Message
Posted by Sleuth on March 25, 2015, 9:22 am
United States Steel Corp. said it would consolidate its North American flat-rolled operations and temporarily idle its operations at Granite City as tumbling oil prices continued to affect the country's second-largest steelmaker.
"As the primary flat-roll supplier of Lone Star Tubular Operations, the consolidation is part of an on-going adjustment of steelmaking operations throughout North America to match customer demands," the company said.
Lone Star Tubular is the U.S. Steel's tube and pipe making operation in Texas, with its products going to the oil and gas industry.
The company is issuing notices to 2,080 workers at Granite City Works under the Worker Adjustment and Retraining Notification Act as part of the consolidation.
In a press release, the steelmaker gave no details about when the layoff will start.
U. S. Steel had about 23,000 employees in North America and about 12,500 in Europe as of Dec. 31, according to a regulatory filing.
The steelmaker has been hit by a surge in Chinese imports and tumbling demand for tubular steel as falling oil prices reduces oil and gas drilling operations.
U.S. Steel announced in early January that it would idle two pipe plants and lay off more than 750 employees due to reduced investments by energy companies.
Granite City already has been feeling the effects of tumbling oil prices.
In late January, U.S. Steel announced it was temporarily shut one of two blast furnaces at its Granite City Works as it replaces a caster at the facility, a project expected to be done in June. Earlier that same month, the company said it would permanently close its coke-making operation in Granite City, cutting 176 jobs.
on March 25, 2015, 9:22 am