US Steel may cut over 500 workers at Lone Star

The News Journal reports that a series of new layoffs are planned in the production of welded pipe (ERW) and specialty pipe products for the energy industry at Lone Star. A US Steel spokesman has alerted 579 other workers that they may be fired from Lone Star as activity slows along with the oil and gas industry.

Oil prices fell about 50 percent from their peak, prompting oil producers to cut back on operations. US Steel's pipe production relies heavily on the energy industry, which purchases pipes and pipes of various diameters.

In addition to the decline in the activities of its clients in the oil and gas sector, US Steel is trying to adapt to increased foreign competition and increased imports, leading to lower prices. Imports of tubular products used in the energy sector rose 40 percent in the first two months of 2015, according to the American Iron and Steel Institute. The industry group says that imports of finished steel products have captured about 33 percent of the US market.

According to the letter sent to employees, layoffs here will begin on June 17 and will last until July 24. This forced measure is associated with the deterioration of the overall conditions in the pipe market, which affects the output of the plant. The company has notified employees and other facilities of possible redundancies. If the trend continues, more than 1,000 people could be laid off at Lone Star this year.

Several pipe mills have been idle at US Steel since the beginning of the year, and operations at Lone Star and other plants are now being adjusted, as the demand for pipes from the oilfield business has dropped significantly.