Last week, U.S. Steel announced plans to layoff around 1,545 workers at Great Lakes Works, steel plants located in Ecorse and River Rouge, Michigan. According to a statement, the company plans to begin idling the iron and steel-making plants around April 1, while the hot strip mill rolling facility will be idle before the end of 2020.
A statement from U.S. Steel reads:
This decision is another step to advance U.S. Steel’s strategy to become a world-competitive, “best of both” company by combining leading integrated and mini-mill steel technology. The decision also illustrates U.S. Steel’s capacity to be nimble and accelerate key aspects of its strategy when market conditions warrant.
The company’s strategy is focused on three core assets within its North American Flat-Rolled segment designed to deliver cost or capability differentiation. The best of both strategy is highlighted by the following investments announced earlier this year: the more than $1 billion endless casting and rolling and cogeneration projects at Mon Valley Works in Pennsylvania, the $750 million in the hot strip mill and other projects at Gary Works in Indiana, and Big River Steel in Arkansas, which is the nation’s first LEED certified steel mill. U.S. Steel ultimately intends to fully acquire Big River Steel by exercising its call option for the remaining equity within the next four years.