USS-UPI Operations To Be Idled by Year's End

According to a 10-Q filing with the Securities & Exchange Commission, the company plans to idle the mill at the end of this year. The filing said the company informed key stakeholders of its plans early in 2022.

U.S. Steel confirmed the idling in an email to SMU on Monday, Oct. 30. A USS spokeswoman said the company “remains committed to continuing to support its employees, customers, and the community through this ongoing transition,” as it has been doing over the last 18 months since informing the key stakeholders.

USS-UPI filed WARN notices with the state on Sept. 29. The notice obtained by SMU shows approximately 473 employees are being impacted by the planned “idling of all operations.” Nearly two-thirds of those workers are represented by the United Steelworkers (USW) union.

The USW called U.S. Steel’s decision “unfortunate.”

“Rather than joining the USW in fighting to preserve the domestic tin mill industry and the good, community-sustaining jobs it supports, U.S. Steel made the unfortunate decision to shutter operations at UPI and lay off hundreds of workers. Our union ensured through effects bargaining that our members are treated with the dignity and respect they deserve throughout this process,” said USW District 12 director Gaylan Prescott in a statement sent to SMU.

This confirms market rumors that have been circulating for some time, as well as previous reports by SMU that the mill would stop operating in late 2023 and that the mill’s equipment was up for sale.

The USS-UPI mill was capable of producing 1.5 million tons annually of cold-rolled and galvanized steel sheet and tin mill products made from hot bands principally provided by U.S. Steel.

USS-UPI had previously been a 50-50 joint venture between U.S. Steel and South Korean steelmaker Posco. U.S. Steel took full control of the company early in 2020.