DECEMBER 18, 2023 — U.S. STEEL SOLD TO JAPANESE STEEL CONGLOMERATE
The iconic 122-year-old United States Steel company, once the largest company on the planet, has agreed to be bought by Nippon Steel, Japan’s largest steelmaker, in a $14.1 billion deal.
On December 18, 2023, United States Steel Corporation, a Delaware corporation, entered into an Agreement and Plan of Merger by and among the Company, Nippon Steel North America, Inc., a New York corporation, 2023 Merger Subsidiary, Inc., a Delaware corporation and a wholly owned subsidiary of Parent, and solely as provided in Section 9.13 therein, Nippon Steel Corporation, a Japanese corporation.
US Steel CEO David Burritt…
“NSC has a proven track record of acquiring, operating, and investing in steel mill facilities globally – and we are confident that, like our strategy, this combination is truly Best for All. This transaction realizes the tremendous value today in our company and is the result of our Board of Directors’ comprehensive and thorough strategic alternatives process. For our U. S. Steel employees, who I continue to be thankful for, the transaction combines like-minded steel companies with an unwavering focus on safety, shared goals, values, and strategies underpinned by rich histories. For customers, U. S. Steel and NSC create a truly global steel company with combined capabilities and innovation capable of meeting our customers’ evolving needs. Today’s announcement also benefits the United States – ensuring a competitive, domestic steel industry, while strengthening our presence globally. Our shared decarbonization focus is expected to enhance and accelerate our ability to provide customers with innovative steel solutions to meet sustainability goals.”
DECEMBER 10, 2023 — GRANITE CITY WORKS - 1076 LAYOFFS
U.S. Steel is idling its operations indefinitely at its plant in Granite City, Illinois, laying off 1,076 workers commencing in January 2024.
NOVEMBER 8, 2023 — 105 IT EMPLOYEES
The company has announced plans to restructure its IT support workforce and will lay off 105 employees located at its Pittsburgh, Pennsylvania Service Center.
According to a spokesperson, “ The layoffs are part of the company’s longer-term strategy to evaluate ways to better position our operations and move down the cost curve. These decisions are never easy, and we are deeply grateful to those employees who will be leaving U.S. Steel. Our focus is on treating our colleagues with dignity and respect during this transition and as they exit the organization in the weeks and months ahead.”
DECEMBER 30, 2022 — 244 LAYOFFS IN GARY, INDIANA.
The company has announced 244 layoffs from its now-idled tin-producing Gary Works plant in Gary, Indiana.
A company statement noted, "These actions are due to market conditions which were out of the Company’s control, including the continuing reduced demand for the Company’s tin products and significantly increased tin mill imports."
MAY 2, 2021 — UPDATES: BAD NEWS, UPGRADE CANCELED
The company has announced that it is canceling a $1.5 billion project to upgrade its Mon Valley Works located in Western Pennsylvania. There are approximately 3,000 employees in the four separate divisions of the Mon Valley Works — Mon Valley Works is an integrated steelmaking operation that includes four separate facilities: Clairton Plant, Edgar Thomson Plant, Irvin Plant, and the Fairless Plant, located near Philadelphia, Pennsylvania.
In addition, the company will it will shut down batteries 1, 2, and 3 at its Clairton Plant by early 2023 in furtherance of reducing pollution emissions. The reduction in force will come from retirements and reassignments of the 130 positions associated with the three batteries.
The cancellation decision was driven by the inability to secure permits in the region. Approximately 1,000 construction jobs will not be needed and additional job pressures and layoffs will threaten some of the remaining 3,000 workers.
JUNE 4, 2020 — 250 EMPLOYEES, PLANT IDLED IN LORAIN, OHIO
The company has announced that it will be indefinitely idling all operations at its Seamless Tubular Operations plant in Lorain, Ohio due to weak market conditions for tubular steel, high levels of imports, and the price and demand for oil. The COVID-19 pandemic did not play a part in the decision to idle the plant.
APRIL 19, 2020 — 375 LAYOFFS IN KEEWATIN, MINNESOTA AS MINING OPERATIONS IDLED.
In response to the lagging demand for steel and the idling of a number of blast furnaces, the company will lay off approximately 375 employees involved in the mining and production of iron ore pellets used in the company’s blast furnaces.
According to the company, “Following operational adjustments announced on March 27, 2020, after further study of current demand, we must make additional adjustments to our raw materials production and indefinitely idle our Keetac facility to respond to the sudden and dramatic decline in business conditions resulting from the worldwide COVID-19 pandemic.
To be noted, steel demand was lagging long before the COVID-19 pandemic.
MARCH 25, 2020 — 250 LAYOFFS IN LORAIN, OHIO AND LONE STAR, TEXAS
The company has announced that it idling the Lorain Tubular Operations facility located in Lorain, Ohio, and will lay off 250 employees by May 24, 2020.
The company is also idling its Tubular Operations facility in Lone Star, Texas with layoffs of up to 600 workers.
A company spokesperson noted, “This action is a result of weak tubular market conditions, including continued high levels of imported tubular products, which are impacting demand for the facility's products. U. S. Steel advised employees that Lone Star Tubular Operations in Lone Star, Texas, and Lorain Tubular Operations in Lorain, Ohio, will indefinitely idle operations due to challenging market conditions and high import levels. This decision is largely related to market conditions, including oil pricing, imports, and demand — not to the current COVID-19 pandemic.
FEBRUARY 13, 2020 — CONTINUING CUTS IN HEADCOUNT
Another announcements of company-wide cuts of primarily non-union managerial employees in Indiana. The company refuses to comment on the number of cuts — believed to be in excess of 100 employees — or the specific locations involved.
According to a company spokesperson “Our enhanced operating model and organizational structure and the changes associated with them are necessary to accelerate our strategic transformation into a world-competitive organization, and better serve our customers. We do not take these decisions lightly, and we have provided impacted employees with resources to aid in their transition."
DECEMBER 21, 2019 — 1,545 LAYOFFS SCHEDULED FOR THE U.S. STEEL GREAT LAKES WORKS IN MICHIGAN
The company has announced that it will be ceasing steel production at the Great Lakes Works around April 1, 2020, and that its hot-strip rolling mill be cease operations before the end of 2020. Production will be transferred to the company’s Gary Works in Indiana. Other operations at the plant will not be affected.
According to David B. Burritt, President, and CEO, “We are conscious of the impact this decision will have on our employees, their families, and the local community, and we are announcing it now to provide them with as much time as possible to prepare for this transition. These decisions are never easy, nor are they taken lightly. However, we must responsibly manage our resources while also strengthening our company’s long-term future —– a future many stakeholders depend on. We will be taking steps in the weeks and months ahead to assist impacted employees by providing additional education about benefits available through our company, as well as community resources.”
NOVEMBER 23, 2019 — AN UNKNOWN NUMBER OF LAYOFFS ANNOUNCED AS RESTRUCTURING CONTINUES
The company continues to implement its previously announced restructuring plan and has laid off an undisclosed number of nonunion salaried employees in Gary, Indiana, and at Portage, Indiana. Layoffs of 150 unionized workers and an unspecified number on non-union salaried workers at the East Chicago Tin Mill have commenced.
It appears that the company will transition from making steel directly from iron-bearing ore in blast furnaces to making steel from scrap using electric furnaces.
AUGUST 29, 2019 — Original post…
Pittsburgh, Pennsylvania-based United States Steel Corporation, one of the largest integrated steel producers in the United States, has announced that it will be laying off approximately 200 workers in its Great Lakes, Michigan mill. The layoffs will include plant activities from blast furnaces to finishing operations. The decision was conditioned on lower steel prices, reduced demand, tariffs, and competition with foreign steel providers. Demand from automakers, farm, and heavy equipment manufacturers has impacted the company’s operations. While the company is not labeling the layoffs as being permanent, they are expected to last beyond six months, which for skilled employees is nearly the same as a permanent layoff.
If the market continues to crater, it is likely that layoffs will extend to the company’s steel works in Gary, Indiana, its largest plant in the United States. In June, 2019 the company announced that it was idling two blast furnaces, one out of three at Great Lakes and one out of four in Gary in addition to one in Europe (Serbia).
Idling a blast furnace is not a trivial undertaking as it is expensive and can damage critical made-to-order furnace components. Few people have any idea of the size and scale of a blast furnace.
Politicians in Indiana are trying to retain jobs by offering up a $47 million dollar tax break if the company invests $750 million to upgrade Gary’s aging facilities and maintain an employment level at 3,875 workers.
U.S. Steel also plans to idle East Chicago Tin located in East Chicago, Indiana and laying an estimated 150 workers.
There is little doubt that tariffs on steel products and the reduction in crop production is resulting in a reduction in a corresponding reduction in tin can production. So it should come as no surprise that U.S. Steel would consolidate their tin mill products.
According to a company spokesperson, "Following extensive market analysis of our global competitiveness in light of high levels of low-priced imported tin mill products entering the United States, we have decided to consolidate our current tin mill products production from three to two facilities, idling our East Chicago, Indiana, facility by mid-November 2019. Our goal is to place as many East Chicago Tin employees as possible at other nearby U. S. Steel facilities."
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere ... are you now wondering, Am I Next?
