U.S. Steel on Friday announced that it will bring a plant in Indiana to a standstill at most by mid-November. The step has been taken by the company to consolidate its till mill operations within the United States. The shutdown of the plant will affect around 150 workers, who will end up jobless once the plant is idle. This just follows the news of U.S. Steel shutting down its Great Lake Facilities that left 200 people without a job in Michigan.
American economy is struggling and so is the labor market. The Pittsburgh-based company pointed out to higher levels of imports that are priced much lower than the expected mark as the reason behind its decision. U.S. Steel will now be consolidation its work at East Chicago Tin facility into Midwest Plant and Gary Works in the Northwestern Indiana. The plant that is being shut down had employed 297 workers. The company has stated that it will be employing half of them into a plant at the two Northwest Indiana plants, where the company would be consolidating its work. U.S. Steel shares did not see a positive impact of the announcement as its shares went down 5.3 per cent on Friday to close at USD 11.17. Its shares have fallen by a massive 76 per cent since the day Donald Trump announced a 25 per cent tariff hike on foreign steel imports in order to boost the limping American steel makers.
Talking about layoffs, the Philadelphia Energy Solutions too began laying off almost its entire workforce after having been forced to file for bankruptcy. PES has already started terminating employees before the 25 August termination date, but is reportedly prepared to pay all union workers until August 25. The company has stated it is planning to sell the defunct plant to a buyer who’d restart it.