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Up to a thousand steel-making jobs will be lost in Granite City

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Illinois

US steelmakers rely on Russia and Ukraine for shipments of pig iron and steel slabs, used to produce raw steel at electric arc furnace (EAF) steelmakers and for rerollers to make flat-rolled products. […]

Russia and Ukraine have been critical pig iron suppliers to the US for years, comprising more than 60pc of the imports coming in since 2018.

* Bloomberg…

U.S. Steel Corp., the nation’s third-largest steelmaker, announced it’s in talks to end production at its century-old furnaces in Illinois. Shares fell to their lowest since January.

The more than 120-year-old Pittsburgh-based company plans to sell the two blast furnaces at its Granite City Works facility to SunCoke Energy for an undisclosed amount to propel the use of so-called pig iron, a raw material needed to make steel in its mini-mills. Transitioning the facility to produce the raw material from steelmaking will take until 2024 and would result in the loss of as many as 1,000 jobs, according to the company.

* BND…

Under the company’s plan, U.S. Steel would sell iron ore from its own mines to SunCoke. SunCoke would sell all of the material back to U.S. Steel for use in its own “mini mill” in Arkansas and other locations, creating a “significant cost advantage,” according to the letter. “We want to be as self-sufficient as possible,” said U.S. Steel spokesperson Amanda Malkowski.

* KSDK…

United Steelworkers late Tuesday called United States Steel Corp.’s plans to sell two blast furnaces at its big Granite City, Illinois, facility a “betrayal” and another example of how the Pittsburgh-based manufacturer is reducing union facilities.

In a statement, USW International President Thomas Conway blasted U.S. Steel (NYSE: X) for its announcement to sell the two blast furnaces to an outside company, as well as its plans to only have one finishing mill at Granite City Works. It said the company “callously failed to mention a word about the massive job loss” at the Granite City plant, which makes hot-rolled, cold-rolled and coated steel for automotive, construction and other industries. […]

United Steelworkers said the steelmaker was making investments in its electric arc furnace operations, such as the nonunion Big River Steel plant in Arkansas, at the detriment of union operations.

“U.S. Steel has established a trend in recent years of shutting down operations, as it has done at the Great Lakes facility in Detroit, Lone Star Steel in Texas, tubular operations in Ohio, and the company abandoned a previously announced major capital improvement project at the Mon Valley Works and announced the closing of its West Coast operations at UPI in California,” Conway said.

* Post-Dispatch…

The deal, if finalized, threatens the future of a 127-year-old operation, an economic engine of this Metro East suburb and a facility held up as a success story in a revitalized U.S. steel industry. Just four years ago, President Donald Trump visited the plant, lauding the impact of tariffs he imposed on imported steel. The plant had ground to a halt about two years prior. But, that summer, the facility was set to rekindle both blast furnaces. Rehiring had already begun.

This week’s announcement, however, shows U.S. Steel shifting directions.

U.S. Steel would supply the iron ore for the SunCoke plant from its own mines.

posted by Rich Miller
Wednesday, Jun 29, 22 @ 12:36 pm

Comments

Not good

Comment by Nick Wednesday, Jun 29, 22 @ 12:49 pm
The mini-mills are so much more competitive on price that this was inevitable.

Comment by Chicagonk Wednesday, Jun 29, 22 @ 12:52 pm
Prep for the “I did that” stickers of Biden to pop on this issue. Even though, “he didn’t”…

Comment by CentralILCentrist Wednesday, Jun 29, 22 @ 12:53 pm
But…but…but…. MAGA…

Comment by Vote Quimby Wednesday, Jun 29, 22 @ 12:54 pm
So sad, but how many of these union workers voted for Mr Right to Work, I mean Trump? You reap what you sow. And yes, my family have been IBEW, Teamsters, Union Bricklayers for 80+ years.

Comment by Suburban Dad Wednesday, Jun 29, 22 @ 1:13 pm
Nationally Most/many employers can’t fill job openings- anyone tabulate if JB is in the plus or loss column for total jobs during his 4 years as governor?

Comment by Sue Wednesday, Jun 29, 22 @ 2:29 pm
@Vote Quimby and suburban Dad

This. 100% agree.

Comment by Kippax Blue Wednesday, Jun 29, 22 @ 5:47 pm
Energy costs are huge and Illinois is closing their co-gen facility. Metro east legislators tried but failed to get changes to CEJA. Final mail in the coffin.

Comment by Anonymous Wednesday, Jun 29, 22 @ 8:37 pm