U.S. Steel to Cut Back at Pipe Factories Amid Oil SlumpTim Loh
U.S. Steel Corp., the country’s second-biggest producer of the metal, plans to scale back production at two pipe plants and a related flat-roll supplier as the oil price crash cuts spending by energy companies.
The steel producer, based in Pittsburgh, has notified 1,918 workers about potential dismissals at its Lone Star Tubular Operations in Texas and its Fairfield Tubular Operations and Fairfield Works flat-roll supplier in Alabama, according to a statement on Monday.
U.S. Steel, which benefited from a boom in the country’s oil and natural gas sector, is now reacting to turmoil in energy markets. With the U.S. benchmark price for crude tumbling more than 50 percent since June, producers and oil-services companies have cut jobs and spending budgets.
U.S. Steel announced plans earlier this month to idle two pipe plants in Ohio and Texas, potentially cutting 750 jobs.
Chief Executive Officer Mario Longhi will discuss the moves on the company’s fourth-quarter earnings call on Wednesday at 8:30 a.m., the company said.