Top U.S. Steelmaker Stops Tubular Plant Operations

SEATTLE (Scrap Monster): United States Steel Corporation (U.S. Steel) announced its decision to idle operations at two tubular plants. The operations at Lorain, Ohio, and Lone Star, Texas will be idled for an indefinite period.

The statement published by the Pittsburgh-based leading U.S. steelmaker states that employees at both the plants have already been informed about the decision. It has issued Worker Adjustment and Retraining Notification (WARN) notices related to the idling, which states that layoffs related with the idling of operations could take effect in as little as 60 days. The decision is attributed to ongoing challenging market conditions and elevated import levels, the statement noted.

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The announced idling has the potential to impact approximately 600 employees at Lone Star Tubular Operations and around 250 employees at Lorain Tubular Operations. The total number of impacted employees will depend on operational and maintenance needs. The company does not expect to layoff all of the employees. The employment losses are expected to begin May 24, 2020.

David B. Burritt, President and Chief Executive Officer noted that the tubular market continues to be challenging and that the company is currently focused on preserving cash and liquidity.