Granite City steelworkers brace for layoffs

Oct 09, 2015 04:35 GMT   Source:scrap monster

By  Paul Ploumis 08 Oct 2015  Last updated at 08:45:36 GMT

Pittsburgh-based US Steel has issued notice to around 2,000 steel workers at its Granite City steel making facility of possible temporary shutdown.

HIGHLAND (Scrap Monster): In a decision which could possibly affect all the businesses in the region, US Steel Corporation on Tuesday announced that it plans to temporarily idle its Granite City steel making facility.

The move is considered to be part of company’s efforts to streamline its North American flat-rolled operations portfolio. The company also blames current market conditions and challenging domestic steel industry for the decision. The demand for flat-rolled tubular steel products from oil drillers have plunged significantly. In addition, the domestic market is flooded by cheap imported steel.

According to US Steel spokeswoman Courtney Boone, the company has been witnessing sharp fall in demand for flat-rolled tubular steel manufactured at the facility. She added that no schedule of layoff has yet been finalized and only market conditions could determine whether the Granite City mill will be permanently idled. Further, the operations at Indiana, Michigan and Pennsylvania will continue, she added.

The Pittsburgh-based company has issued notice about possible consolidation to nearly 2,000 employees working in the steelmaking facility. Earlier in May, the company had announced closure of the facility by idling 2,080 workers. However, the facility continued working in reduced shifts, thereby leading to lay off of as many as 80 workers.

The United States Steel Corporation, more commonly known as U.S. Steel, is an American integrated steel producer with major production operations in the United States, Canada, and Central Europe. The company manufactures a wide range of value-added steel sheet and tubular products for the automotive, appliance, container, industrial machinery, construction, and oil and gas industries.