Vallourec Star Announces Shutdown of Ohio Steel Mill

The Vallourec steel mill in Youngstown, Ohio will be dormant in February. According to the company, the decision to idle for three weeks was prompted by a difficult situation in the oil and gas markets. Vallourec is a world leader in pipe manufacturing, primarily serving the energy markets. Vallourec Star is a joint venture between France's Vallourec and Japan's Sumitomo Corp. that produces seamless pipes for the oil and gas industry and other applications.

As a result of the sharp drop in oil prices, the demand for steel pipes has decreased. The company has previously resorted to some regulatory measures, including re-scheduling production at the plant, and the use of contractors has been minimized. However, business conditions required additional measures in relation to the operational plans, which led to the decision to idle for three weeks. The company clarified that further action, if necessary, will be based on market conditions.

The company opened a plant in Youngstown, Ohio to meet the growing demand for steel pipes in the oil and gas industry. However, the recent drop in oil prices to less than $ 50 a barrel has forced many drillers to scale back in Ohio and the rest of the country.

Vallourec also offers voluntary termination of employees at the facility for a period of six months. At the same time, the company clarifies that health insurance will be maintained during this period. The Ohio plant employs about 500 people. In addition to Youngstown, the company has offices in Houston and Muskogee, Oklahoma.