Steel Mills
ArcelorMittal Next in Line to Announce Layoffs
Written by Sandy Williams
August 22, 2019
ArcelorMittal announced that it will lay off 100 workers at its Weirton, W. Va., tin plate plant. The company joins its competitors, U.S. Steel and NLMK USA, in cutting back production in recent weeks.
ArcelorMittal said in a statement:
“In order to maintain its position as a competitive and sustainable tin plate producer, ArcelorMittal Weirton will lay off approximately 100 employees for an indefinite period of time. This will occur in phases, beginning this week. The workforce reductions will be realized across the operation with reduced shifts across most production units.
“This was a very difficult decision to make, but it is necessary to align ArcelorMittal Weirton’s employment levels with challenging market conditions, which include decreased demand for tin plated cans and pressure from foreign imports.”
The Weirton plant produces cold rolled steel and tin plate products used in cans for the agricultural industry. Mark Glyptis, president of USW Local 2911 in Weirton, blamed the layoffs on a poor harvest season. “The substrate we produce to make tin cans is used to can tomatoes, peas, corn and primarily food, and it was a very poor harvest,” said Glyptis.
In July, NLMK Pennsylvania laid off 80 employees due to the Trump administration’s tariffs on steel imports. NLMK relies on imports of steel slabs from its Russian parent Novolipetsk Steel, which are subject to the 25 percent tariffs. NLMK USA was unable to secure an exemption for the slabs from the Commerce Department.
“This is what I predicted a year ago,” Bob Miller, president of NLMK Pennsylvania, told the Sharon Herald. “We’re running less turns and experiencing layoffs now because of tariffs.”
U.S. Steel has shut down two blast furnaces due to lower pricing and weakening steel demand. This week the company announced plans to lay off 300 workers at Great Lakes Works for a period of six months or more beginning Sept. 30. Analysts note that the company’s stock price has plummeted 73 percent since the steel tariffs were initiated on March 1, 2018, and net earnings in Q2 2019 fell 68 percent year-over-year.
Despite layoffs, declining prices and weaker demand, President Trump told workers last week at Shell Pennsylvania Petrochemicals that his tariffs have caused the steel industry to thrive.
“And, by the way, steel — steel was dead,” said Trump. “Your business was dead, OK? I don’t want to be overly crude. Your business was dead. And I put a little thing called ‘a 25 percent tariff’ on all of the dumped steel all over the country. And now your business is thriving.”
At a New Hampshire rally on Thursday, Trump doubled down on the success of the steel tariffs, citing them as a deterrent to the dumping of steel by foreign exporters.
“We’re doing steel. The steel industry is hot. They were dumping steel all over. They were destroying our companies. U.S. Steel now, all of them, they’re all expanding. The steel industry is back. It’s doing great.”
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Nucor breaks ground on new Berkeley galv line
Nucor broke ground on a new galvanizing line at its Nucor Steel Berkeley sheet mill in Huger, S.C., on Thursday, May 2.
USS, Nippon merger delayed by DOJ antitrust review
The sale of U.S. Steel Corp. to Nippon Steel Corp. has been delayed by the US Department of Justice’s antitrust investigation. The Justice Department, which is conducting an antitrust review of the merger, has requested additional information from both USS and NSC. The companies originally anticipated closing the sale in the second or third quarter […]
U.S. Steel Q1 earnings slip, BRS expansions proceed
U.S. Steel posted slightly lower Q1’24 earnings as stronger earnings from its sheet mills were partially offset by a weaker performance from it tubular division. All told, the Pittsburgh-based steelmaker reported Q1’24 earnings of $171 million. That's down 14.1% from $199 million in Q1’23 on sales that fell 6.9% to $4.16 billion in the same comparison.
ArcelorMittal says Calvert CR outage over, floats buying Nippon’s stake in JV
ArcelorMittal posted a narrower Q1’24 profit compared to Q1’23 but remained optimistic about steel's long-term demand prospects.
SMU Community Chat: Hybar’s ambitious plans as newest player in rebar
Hybar has big plans for entering the American steel market. Although it is the newest player in the US rebar market, the startup is led by an experienced, nimble, and ambitious team, and backed by investors with deep pockets. Industry titan and Hybar CEO David Stickler joined SMU Managing Editor Michael Cowden on Wednesday’s Community Chat to update the SMU community on the company’s first mill, and its grand plans for the future.