U.S. Steel Corp. said it will curtail production at pipe-making plants in Alabama and Texas and may lay off almost 2,000 workers because of “softening market conditions” in the oil and gas industries.
The Downtown-based steelmaker said late Monday that it would “temporarily adjust operations” at Lone Star Tubular Operations in Texas, Fairfield Tubular Operations in Fairfield, Ala., and Fairfield Works, the primary flat-roll supplier of rounds to Fairfield Tubular Operations.
U.S. Steel Corp. said on Wednesday it plans to close two coke-making units and a tin mill that makes sheet for cans at plants in Illinois and Indiana, actions that would affect 545 workers.
The closings are the latest to be announced by the Downtown-based steelmaker as it “moves through its Carnegie Way assessment of all our operations,” said spokeswoman Courtney Boone.
Two weeks ago, U.S. Steel said it will shut down two more oil and natural gas pipe plants and lay off 756 workers. In August, it closed pipe plants in McKeesport and Bellville, Texas, affecting 260 workers.
CEO Mario Longhi has moved to restore confidence and improve performance. He has closed mills and saved almost $1 billion under its Carnegie Way initiative to cut costs and by halting an iron ore expansion project in Keewatin, Minn. The company also has relinquished control of its money-losing Canadian unit.
The company had warned employees that it would file a motion with U.S. Bankruptcy Court today seeking permission to shutter its operations and sell assets if plants didn’t resume normal operations by a Thursday evening deadline.
The closing would mean the loss of about 18,500 jobs.
“Many people have worked incredibly long and hard to keep this from happening, but now Hostess Brands has no other alternative than to begin the process of winding down and preparing for the sale of our iconic brands,” CEO Gregory Rayburn said in a letter to employees posted on the company website.