Reacting to the downturn in steel demand, U.S. Steel Corp. said late Tuesday it temporarily will consolidate steel production at its Mon Valley Works and mills in Indiana, Alabama and Ontario, laying off about 3,500 employees at out-of-state mines and mills.
The consolidation "is a necessary response to current market conditions," U.S. Steel Chief Executive John P. Surma said.
Pittsburgh-based U.S. Steel said it made the decision after a continuing review and analysis of market conditions and their impact on customers' orders, but gave no details.
In addition to concentrating production at its Mon Valley Works -- which consists of the Edgar Thomson plant in Braddock, the Irvin plant in West Mifflin, the Clairton coke plant and a mill in Fairless Hills, near Philadelphia -- the steelmaker will be using its plants in Gary, Ind., Fairfield, Ala., and Nanticoke, Ontario.
U.S. Steel spokesman John Armstrong said the company would not comment on how much production would be reduced by temporarily consolidating operations.
The facilities that are to be temporarily idled over the next several weeks are Keetac, an iron ore mining and pelletizing facility in Keewatin, Minn.; the Great Lakes Works near Detroit, Mich.; and the Granite City Works near St. Louis.
This is the second round of layoffs at U.S. Steel in less than a month. On Nov. 13, the company said it would lay off about 500 workers in the United States, including about 78 at its Edgar Thomson and Irvin plants, because of weakening customer demand. It also furloughed 177 workers in Canada.
Armstrong said the 78 local workers could be recalled if customer demand increases.
Arcelor Mittal said last month it might cut about 16 percent of its U.S. work force because of lower steel demand in key markets, including the automotive market. The company said it was considering cutting about 2,400 jobs from its Burns Harbor, Ind., plant.
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