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Crisis over steel industry continues

Created: 11/25/2015
Author: -r-
Category: 24/2015


"The black scenario" came true at Fairfield Works, which is a part of portfolio of the United States Steel Corporation. Last week, the Corporation´s Management decided to shut the Blast Furnace down. More than one thousand employees will lose out. They have already shut  the blast furnace down twice this year, but now it is definitive. The local authorities were informed by the Management about the mass layoff. They promised to support the affected employees. Support includes the different training and retraining programs. The Company's Management stated that some employees can find a job in other thirteen plants  of the Corporation. Shut-down of the Blast Furnace at Fairfield Works will have an impact neither on the pipes production, nor on the completion of the project "Building the Electric Arc Furnace".



Decrease in steel consumption, difficult situation on the markets and pressure on environment protection will lead to shut the Steelworks down in China. In the next decade, their number should be reduced from the current 500 to approximately 200 production plants.  It is the opinion of Mr. Li Xinchuang, President of the China Steel Producers Association.  He claims that many ineffective metallurgical companies will be shut down leading  to the mass layoff in the next years. It will be necessary to retrain these employees. The Association supports the metallurgical companies to focus on technical innovations. Steel consumption in the world’s most populous country will decrease below 600 million metric tons per year by 2020 and even below 500 million metric tons per year by 2030, according to Mr. Li Xinchuang. In 2014, steel consumption in China declined by 3.4% to 738.3 million metric tons. The Emissions Trading Program, which should be presented by China in 2017, will also decrease the production.



The United States Steel Corporation continues to consolidate its North-American Plants. This week, Management has decided to temporarily idle the Granite City Works Steelmaking and Finishing Operations in Granite City, Illinois. Difficult situation on the markets, fluctuations in prices in the Oil Industry as well as unfairly-traded steel especially from China are the main reasons for these unpopular measures. The shutdown period was not specified. What is certain is that the all 2,080 employees of Steelworks will remain out of work. Employees have also been informed of the layoff. The Granite City Works were the main supplier of flat-rolled products designed for customers in Oil and Gas Industry. The Corporation continues to operate the Steelworks in Indiana, Michigan and Pennsylvania as well as Division of Finishing Production in Alabama.


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