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US Steel shuts 3 plants temporarily; 3,500 jobs affected

December 03, 2008 14:11 IST

United States Steel Corporation has announced temporarily shutting down three of its plants for the next few weeks following a steep decline in demand for steel products due to the global economic meltdown.

This action would affect approximately 3,500 employees over the indefinite period at US Steel's Keewatin, Detroit and St Louis plants, the company said.

"Approximately 3,500 employees will be affected. The unions representing workers at these facilities have been notified of the temporary idling," the statement added.

According to the company, due to continuous business review, analysis of market conditions and their impact on customers' orders, it had to take further steps to consolidate operations.

US Steel said it plans to temporarily concentrate production at Mon Valley Works near Pittsburgh; Gary Works in Gary, Ind.; Fairfield Works near Birmingham, Ala.; and Lake Erie Works in Nanticoke, Ontario.

"We believe that our difficult decision to temporarily consolidate our production is a necessary response to current market conditions," US Steel Chairman and Chief Executive John Surma said.

However, the statement is reportedly followed by the company's earlier announcement in mid-November that it laid off 675 workers in the US and Canada.

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