U.S. Steel to close three plants, consolidate

U. S. Steel is consolidating its operations and idling three plants in the Midwest, but Gary Works remains unaffected -- for now.

Fewer orders have forced the steelmaker to get its operations in line with softened customer demand. About 3,500 steelworkers will be laid off as U.S. Steel idles Keetac, an iron ore mining and pelletizing facility in Keewatin, Minn.; Great Lakes Works near Detroit, Mich.; and Granite City Works near St. Louis, Mo.

U.S. Steel plans to temporarily concentrate production at Gary Works; Mon Valley Works near Pittsburgh, Pa.; Fairfield Works near Birmingham, Ala.; and Lake Erie Works in Nanticoke, Ontario.

U.S. Steel spokesman John Armstrong said there will be no change in the workforce at Gary Works.

"The market has affected our order book. We continue to monitor the market. What we've had to do (is) adjust production throughout to match customer demand," Armstrong said.

Armstrong said the company would need to see an uptick in orders before restoring its workforce to previous levels.

U.S. Steel laid off 100 workers in Northwest Indiana in mid-November. At least 800 contract workers were laid off in October.

ArcelorMittal plans on laying off 490 employees at the Burns Harbor mill in January.

The steel industry has gone from record-high steel prices in early 2008 to a sharp decline in orders as the economy slowed in North America and Europe. Fewer automotive purchases mean less steel is ordered.

Jim Robinson, district director of United Steelworkers, said the outlook across the industry isn't good.

"Obviously, if you look only at Gary Works, it's probably good news for them," Robinson said. "The numbers are just starting to get incredible in terms of economic activity. This is centralizing job security in the very short term; who knows for the long term.

"The problem is that there are no orders. Something needs to happen to us to get us moving again."

Robinson said a stimulus package that would update infrastructure across the country could jump-start the industry and all of the other areas linked to steelmaking -- from equipment manufacturers to construction workers.

"I think that a big stimulus package in infrastructure projects targeted at things that are already being done or can get up and running quickly would be the way to go," Robinson said.

"You need steel to build things."