Evraz Idles Large OD Pipe Production, Lays Off Workers in Regina

“Although our overall business is strong, including demand for our other steel products, the large-diameter pipe market has been soft,” a company spokeswoman told SMU in an email on Friday, June 17.

“Because the large-diameter pipe business is highly cyclical in nature, we have prioritized investments in R&D to better plan for and position our operations for the future. … We are hopeful new markets designed to transport hydrogen and CO2 for CCUS applications will offer a more consistent landscape for the large-diameter pipe fabrication operations and the jobs it supports,” she said.

CCUS is short for carbon capture, utilization and storage.

The layoffs of approximately 170 employees began in May, the spokeswoman said. Local media reports say the jobs of up to 300 employees may be affected, many of whom just returned to work in January. The company says it has offered displaced workers employment opportunities at its Calgary, Alberta, OCTG mill.

Evraz’s Regina mill makes not only large-diameter line pipe but also discrete plate and coiled plate as well as small diameter line pipe and OCTG. The mill operates two EAFs with a total capacity of approximately 1.2 million tons per year. It has the annual capacity to produce 500,000 tons of large-diameter pipe, 175,000 tons of line pipe, and 62,000 tons of OCTG tubing.

By Laura Miller, Laura@SteelMarketUpdate.com