United States Steel (US Steel), headquartered in Pittsburgh, will temporarily idle its Granite City Works operations in Granite City, Illinois. As the primary flat-roll supplier of US Steel’s Lone Star Tubular Operations, the shutdown is described as part of the company’s ongoing adjustment of steelmaking operations throughout North America to match customer demands.
The company cites slumping demand for steel used in the oil and gas exploration as a key reason for the temporary shutdown, along with a sharp increase in steel imports that has suppressed domestic prices.
In announcing the temporary closure, US Steel says it routinely adjusts production at its facilities to reflect market fluctuations, adding the closure is the result of challenging market conditions that reflect the cyclical nature of the industry. Global influences in the market, such as reduced steel prices, unfair trade, imports and fluctuating oil prices, continue to have an impact on the domestic steel business.
US Steel says it will continue to operate its steelmaking operations in Alabama, Indiana, Michigan and Pennsylvania.
As part of the temporary closure, 2,080 employees at its Granite City Works are being issued notices under the Worker Adjustment and Retraining Notification (WARN) Act. These notices are separate from the notices related to the permanent shutdown of Granite City Works' coke making facility.
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