Steel Mills
Evraz Idles Large OD Pipe Production, Lays Off Workers in Regina
Written by Laura Miller
June 17, 2022
Evraz North America is idling production of large-diameter pipe at its Regina, Saskatchewan, mill due to market conditions, resulting in the layoff of hundreds of Canadian employees.
“Although our overall business is strong, including demand for our other steel products, the large-diameter pipe market has been soft,” a company spokeswoman told SMU in an email on Friday, June 17.
“Because the large-diameter pipe business is highly cyclical in nature, we have prioritized investments in R&D to better plan for and position our operations for the future. … We are hopeful new markets designed to transport hydrogen and CO2 for CCUS applications will offer a more consistent landscape for the large-diameter pipe fabrication operations and the jobs it supports,” she said.
CCUS is short for carbon capture, utilization and storage.
The layoffs of approximately 170 employees began in May, the spokeswoman said. Local media reports say the jobs of up to 300 employees may be affected, many of whom just returned to work in January. The company says it has offered displaced workers employment opportunities at its Calgary, Alberta, OCTG mill.
Evraz’s Regina mill makes not only large-diameter line pipe but also discrete plate and coiled plate as well as small diameter line pipe and OCTG. The mill operates two EAFs with a total capacity of approximately 1.2 million tons per year. It has the annual capacity to produce 500,000 tons of large-diameter pipe, 175,000 tons of line pipe, and 62,000 tons of OCTG tubing.
By Laura Miller, Laura@SteelMarketUpdate.com
Laura Miller
Read more from Laura MillerLatest in Steel Mills
USS confirms split CFIUS decision on Nippon deal; it’s now up to Biden
Nippon Steel's purchase of U.S. Steel could lead to lower steel output domestically, and that presents “a national security risk," the Washington Post reported.
USS/Nippon deal: Who will have the happiest holidays?
Will Santa bring gifts for the leadership, employees, and shareholders of U.S. Steel and Nippon Steel, and lumps of coal for USW leadership and politicians opposed to the deal?
‘Orderly liquidation’ of AHMSA assets begins
A trustee has formally taken over AHMSA and begun the liquidation process of the bankrupt Mexican steelmaker.
Nippon buying stake in Canadian iron ore project
Nippon Steel and a Japanese trading company have entered an agreement to buy a 49% interest in a Champion Iron ore project in Canada.
USS anticipates Q4 loss on weak demand, BR2 start-up
Amid a challenging pricing and demand environment, and with the ongoing ramp-up of the Big River 2 mill, USS is anticipating a loss for the fourth quarter.