US Steel Announces Mass Layoff
Great Lakes Works Operation in Ecorse and River Rouge affected
December 26, 2019
ECORSE - Hundreds of steel workers in Metro Detroit will be laid off next year.
U.S. Steel Corporation is planning to shutdown part of its Great Lakes Works operations in River Rouge and Ecorse in the Spring. As many as 1,500 workers could be affected.
The company expects to begin idling the iron and steelmaking facilities on or around April 1, and the Hot Strip Mill rolling facility before the end of 2020.
Other areas at the complex -- including the Pickle Line, Cold Mill, Sheet Temper Mill, Continuous Galvanizing Line, Annealing and Warehouses -- are expected to continue operating in line with customer demand.
The company said the cuts are part of its "best of both" strategy, combining leading integrated and mini-mill steel technology. It could mean a savings of $75 million in 2020.
"In this case, current market conditions and the long-term outlook for Great Lakes Works made it imperative that we act now, allowing us to better align our resources to deliver cost or capability differentiation across our footprint," President and CEO David Burritt said in a statement. "Transitioning production currently at Great Lakes Works to Gary Works will enable increased efficiency in the use of our assets, improve our ability to meet our customers' needs for sustainable steel solutions and will help our company get to our future state faster."