Evraz announces indefinite closure of Portland steel pipe mill

SEATTLE (Scrap Monster): Evraz North America has decided to close its Portland steel pipe plant indefinitely. The company cited regulatory challenges and adverse market conditions for the closure. The company has decided to close the plant on April 9^th, thus laying off 230 employees.

According to Evraz spokeswoman, three primary factors have forced the company to close the mill. First and foremost is the delays in regulatory approvals for pipelines in the US and Canada. Also, the unfair and subsidized imports of large diameter pipe from overseas countries have continued to pressurize the mill operations. Moreover, imposition of high import duties of up to 50% on pipe imports by Mexico is likely to affect its business profitability going forward.

The company spokeswoman stated that layoffs could begin as soon as Saturday. The workers are expected to be paid for 60 days from the time of notification. Meantime, the steel plate facility on the same time will continue to operate and nearly 400 workers will remain at the site.

The Portland steel pipe mill had closed operations in July 2009. But Evraz had reopened the mill in 2011 when oil prices had peaked. The facility had been the main supplier of large-diameter pipe for the energy industry. However, the steel pipe demand from energy sector has plunged recently as gas prices fell by more than half from $4 per gallon to under $2 per gallon.

As per company website, Evraz’s Portland spiral pipe mill is a large diameter, spiral-weld mill with an annual capacity of up to 200,000 tons. The mill converts steel coils from the rolling mill into high-strength, large-diameter API-grade pipe for high-pressure natural gas and oil transmission lines as well as for structural applications. The facility also features a new state-of-the-art external and internal coating facility.