ArcelorMittal closes East Chicago plant

Chicago, Illinois. The city's steel industry is taking another blow as ArcelorMittal plans to close the 114-year-old plant, potentially resulting in the loss of more than 300 direct jobs, as well as many indirect jobs associated with the facility. The company says it plans to idle for the next three months before shutting down the facility.

ArcelorMittal will close its Indiana Harbor Long Carbon (IHLC) facility commencing with an electric arc furnace on March 1st, 2015, and then cease all rolling mill operations in Q2 2015. The company has been in talks with the United Steel Workers (USW) since mid-November to keep the rolling mill operating economically. But he is no longer considering this option, since this solution is not feasible at the current production levels with the demands of the union.

Indiana Harbor Long Carbon was first stopped in 2009 after the economic downturn and returned to service in 2010. However, the facility, which produces steel rods used in the automotive industry, had low capacity utilization and production efficiency amid high costs. As a result, the property has suffered losses since 2011.

Due to the termination of operations, employees may relocate to other ArcelorMittal Indiana facilities. As a result, the company expects that most of IHLC's current employees will be able to find other opportunities within the company. That being said, ArcelorMittal does not say it hopes to restart operations and return employees when market conditions improve.