U. S. Steel Considers Idling Flat Rolled Plant
10/07/2015 - United States Steel Corporation is thinking about consolidating its North American flat rolled division and has given notice that it may temporarily idle its Granite City Works in Illinois, according to reports.
According to The Wall Street Journal, the company told 2,000 workers on 6 October 2015 that the plant might be idled on account of market conditions.
"The potential consolidation is a result of continued challenging global market conditions, including fluctuating oil prices, reduced rig counts, depressed steel prices and unfairly traded imports,” the company told the Pittsburgh Tribune-Review.
“These global influences continue to have a significant impact on the business.”
Granite City primarily makes flat rolled steel for the company's Lone Star Tubular Works in Texas, which produces electric resistance-welded pipe and specialty tubular products for the energy industry.
Lone Star has reduced production this year as energy companies cut gas drilling activity, the Tribune-Review said.
The company in March said it would idle the Granite City Works, but never carried out the plan. Instead, it reduced operations to a single shift and laid off 80 employees, according to the Belleville News-Democrat newspaper.
"The potential consolidation is a result of continued challenging global market conditions, including fluctuating oil prices, reduced rig counts, depressed steel prices and unfairly traded imports,” the company told the Pittsburgh Tribune-Review.
“These global influences continue to have a significant impact on the business.”
Granite City primarily makes flat rolled steel for the company's Lone Star Tubular Works in Texas, which produces electric resistance-welded pipe and specialty tubular products for the energy industry.
Lone Star has reduced production this year as energy companies cut gas drilling activity, the Tribune-Review said.
The company in March said it would idle the Granite City Works, but never carried out the plan. Instead, it reduced operations to a single shift and laid off 80 employees, according to the Belleville News-Democrat newspaper.
