Evraz announces the closure of its Portland steel pipe plant

Evraz North America has decided to close its Portland steel pipe plant indefinitely. The company attributes the closure to regulatory issues and unfavorable market conditions. Evraz decided to shut down the plant on April 9, thereby leaving 230 employees unemployed.

According to a statement from a spokesman for Evraz, the three main factors that forced the company to close the plant are primarily the delay in regulatory orders for pipe products in the United States and Canada. In addition, unfair and subsidized imports of large diameter pipes from foreign countries continue to negatively impact mill operations. In addition, the imposition of high import duties, up to 50 percent on pipe imports in Mexico, could affect the profitability of the business in the future.

A company spokesman said the layoffs could begin in the near future. Workers are expected to be laid off within 60 days of notification. Meanwhile, the steel sheet production facility will continue to operate and nearly 400 workers will remain in place.

The Portland steel pipe plant closed operations in July 2009, but Evraz reopened it in 2011 when oil prices peaked. The facility has been a major supplier of large diameter pipes for the energy industry. However, the demand for steel pipes for the energy sector has now dropped and gas prices have dropped by more than half.

According to the company's website, Evraz Pipe Plant is a manufacturer of large diameter welded pipes with an annual capacity of up to 200,000 tons. The mill uses high strength coiled steel from its rolling mill to produce large diameter API grade pipes for high pressure natural gas and petroleum, as well as structural applications. The facility has a new coating center.