Steel Mills
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/4c8bab0c79df5950a6e6f4aa52832976.jpg)
Low Oil Price Forces U.S. Steel, Tenaris to Idle Tubular Operations
Written by Sandy Williams
March 24, 2020
U.S. Steel and Tenaris will adjust production of tubular products in the U.S. due to low oil prices and declining demand in the oil industry.
U.S. Steel plans to idle tubular operations in Texas and Ohio, affecting 850 employees.
“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. The company has issued Worker Adjustment and Retraining Notification (WARN) notices related to the indefinite idling at each facility. The WARN notices advise that layoffs related to the adjusted operations could take effect in as little as 60 days,” said U.S. Steel spokeswoman Meghan Cox.
Idling operations will impact about 600 employees at Lone Star and 250 in Lorain. “While we do not expect to lay off that number of employees, the total number of employees impacted will depend on operational and maintenance needs,” said Cox.
Layoffs in Lorain will begin May 24, according to the WARN notice sent to Ohio. Lorain Tubular has an annual manufacturing capacity of 380,000 tons of seamless pipe used in oil and gas exploration and production and the construction industry.
Lone Star Tubular Operations specialize in the manufacturing of Full Body Normalized Electric-Resistance Welded (ERW) tubular products for the oil and gas industry. Mill No. 1 and No. 2 have a combined annual capacity of 790,000 net tons of pipe per year.
U.S. Steel noted market challenges for its tubular segment during the company’s second-quarter guidance. “We are continuing to monitor the recent change in market conditions with respect to our Tubular business and will evaluate the impact on the carrying value of the net assets of this business,” said U.S. Steel.
Pipe producer Tenaris also announced workforce reductions due to the decline of oil prices and demand. Operations at Tenaris’ newly acquired Koppel and Ambridge operations in Pennsylvania will be suspended effective March 31 and operations at its threading plant in Brookfield, Ohio, on April 17. Layoffs will also occur at its threading plant in Baytown, Texas, and at its Hickman, Ark., welded pipe plant, effective April 17. The adjustments to production will result in the layoff of more than 900 employees.
“These are extraordinary times for our sector that require us to implement difficult, short-term measures to temporarily lean our operations to maintain a long-term solid position to serve our customers,” said Luca Zanotti, president of Tenaris U.S.
Employees affected by the layoffs are being offered three months of COBRA health insurance with a possible extension due to the coronavirus outbreak.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/04/sandy-williams.jpeg)
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/stelco.png)
Steel Summit 2024: Stelco CEO reflects on strategy, growth, and sale to Cleveland-Cliffs
In a candid fireside chat with SMU Senior Analyst/Editor David Schollert, Stelco’s CEO Alan Kestenbaum opened up about Stelco’s pending sale to Cliffs, his business strategy, outlook for the industry, and plans for the future. The chat took place on Tuesday, Aug. 24, at the 2024 SMU Steel Summit in Atlanta.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/AISI.png)
AISI: US steel shipments unchanged in July vs. June, down on-year
Domestic steel shipments remained nearly flat in July month over month but fell from a year earlier.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/white_house.png)
Media reports: Biden could block USS sale on national security concerns
President Joe Biden could block the $15-billion sale of U.S. Steel to Japan's Nippon Steel by citing national security concerns That’s according to reporting in the Washington Post and the Financial Times that was later picked up by the New York Times as well as in wire services.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/US_Steel.png)
USS threatens to cut ‘thousands’ of jobs, move HQ if Nippon sale blocked
U.S. Steel could slash thousands of jobs, shift away from integrated steelmaking, and move its headquarters out of Pittsburgh if its acquisition by Nippon Steel isn’t completed, the company’s top executive said. “We want elected leaders and other key decision makers to recognize the benefits of the deal was well as the unavoidable consequences if the deal fails,” company President and CEO David Burritt said in a statement on Wednesday.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/SSAB.png)
CRU: SSAB to expand Mobile plate mill
SSAB plans to spend $12 million to boost production capacity at its electric-arc furnace (EAF) plate mill in Mobile, Ala. The Sweden-based steelmaker will do that by expanding the existing furnace there. Shot blast equipment will also be upgraded. The expanded capacity is expected to come online late next year. The mill currently has an […]