U.S. Steel Corp. is putting 2,000 workers in Illinois on notice that they could be laid off as the company considers temporarily idling its Granite City Works to deal with sluggish sales.
Granite City primarily supplies steel to the company’s Lone Star Tubular Works in Texas, which makes pipe for the oil and gas industry. Lone Star has reduced production this year as energy companies cut gas drilling activity.
U.S. Steel also has been hurt by low steel prices and a surge of imports that the company has said are unfairly subsidized by foreign governments.
“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 Downtown-based steelmaker wrote in a statement Tuesday. “These global influences continue to have a significant impact on the business.”
U.S. Steel has been idling production capacity around the country this year and laying off thousands of workers, including at its iron ore mining operations in Minnesota and at its Fairfield Works in Alabama.
Last month, the company said it was laying off white-collar workers as it adjusts its workforce to meet the reduced demand. At the time, the company declined to say how many salaried employees were losing their jobs or which facilities were affected.
The latest production cuts don’t affect U.S. Steel operations at the Mon Valley Works near Pittsburgh, or at plants in Michigan and Indiana.
This article was written by Alex Nixon from The Pittsburgh Tribune-Review and was legally licensed through the NewsCred publisher network.