U.S. Steel to Idle Plant, Lay Off 412 More Workers

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U.S. Steel to Idle Plant, Lay Off 412 More Workers

By John W. Miller
John.Miller@wsj.com
@wsjmiller

Updated March 12, 2015 7:13 p.m. ET

PITTSBURGH—U.S. Steel Corp. on Thursday announced more layoffs as it struggles to contend with surging imports and declining demand in the energy sector, saying it will temporarily idle one of its iron-ore operations in Minnesota, affecting 412 workers.

The move is the latest in a series of retrenchments by the 114-year-old steelmaker as it attempts to navigate rough waters for the industry in the U.S. and pursue a longer-term strategy of repositioning itself as a smaller, more nimble steel company.

U.S. Steel last year posted its first annual profit since 2008, but like other steelmakers is having to cope with the triple whammy of a strong dollar that makes imports cheaper, weak oil prices that are killing the market for energy-related steel and a surge in exports from China.

The idling of the plant in Keewatin, Minn., which directly ships to U.S. Steel mills, will take place on May 13 and affects six million tons of iron-ore production capacity, or 27% of U.S. Steel’s overall iron-ore output last year. “The temporary idling is due to the company’s current inventory levels and ongoing adjustment of its steelmaking operations throughout North America to match customer demand,” U.S. Steel said in a statement.