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US Steel to idle 2 pipe factories after oil price slump
Chicago Tribune reported that US Steel Corp plans to idle two pipe plants and lay off more than 750 employees as the oil price slump cuts spending by energy companies
The workers at Houston and Lorain received WARN Act notices, legally mandated alerts issued at least 60 days ahead of any closings or large-scale firings.
US Steel Monday notified 614 workers about potential dismissals in March at the company's plant in Lorain, Ohio, which produces 780,000 tons a year of seamless tubular steel products.
It issued similar notices to 142 employees at its tube factory in Houston, which processes 120,000 tons annually.
As per report, US Steel made the decision to idle the plants because of softening market conditions influenced by oil prices and trade
US Steel will continue to produce and finish tubular products at its facilities in Alabama, Arkansas and Texas
As per the information from their tubular website, U S Steel is the largest, fully integrated energy tubular producer in North America. US Steel produces tubular products at the following US based facilities
Fairfield Tubular Operations, Alabama
Fairfield Tubular Operations custom creates seamless steel range 3 casing with an OD range of 4-1/2” to 9-7/8”.
Lone Star Tubular Operations, Texas
The Lone Star facility manufactures high-frequency ERW pipe and specialty tubing products for customers working in the energy sector.
Lorain Tubular Operations, Ohio
The Lorain facility produces high-quality seamless pipe used in oil and gas exploration and production as well as the construction industry.
Offshore Operations, Houston Operations, Texas
U. S. Steel Oilwell Services ensures reliable tubular solutions through our unique ability to service projects from mill to well.
Wheeling Machine Products, Arkansas and Texas
Wheeling Machine Products supplies couplings and specialized couplings ranging in size between 2.375” to 20” used to connect oilfield casing and tubing sections.
Tubular Processing Houston Operations, Texas
This service facility provides upsetting, quenching and tempering, full body normalizing, non-destructive testing, hydrostatic testing, for both API and premium thread lines.
Patriot Premium Threading Services
Patriot Premium Threading Services provides quality connections, repairs, accessories, and rig site services to customers across the Permian Basin.
In 2013, US Steel's tubular division comprised 10 mills with a production capacity of 2.8 million tons a year. The segment posted a USD 69 million profit in the third quarter of 2014, up from USD 49 million a year earlier, even as the company posted an overall net loss.
Source - Chicago Tribune