[ChickenCityRoller]

I'm suprised it hasn't been brought up here. Maybe it has and I just haven't seen it. Mittal Burns Harbor might have 2400 of 4000 employees laid off very soon. The paper I read over the weekend made it sound like all 2400 layoff's were going to be in Burns Harbor but this more recent article makes it sound like it might be nationwide. In eithercase it's not good.







Arcelor Mittal may cut 16% of U.S. work force - reports
11/25/2008 6:45 AM ET [/size][size="1"] (RTTNews) - Steel giant Arcelor Mittal (MT: News ) could layoff 16% of its U.S. work force as demand for steel lowered in key automotive, construction and retail appliance industries, reports said.

It is expected that the company is targeting to cut 2,444 of its employees from January onwards, making it the largest single layoff of steelworkers in the U.S. in view of prevailing global turmoil. The report noted that the company has informed the United Steelworkers about the possibility of an "indefinite layoff" at the Burns Harbor plant beginning the second half of January.

Jim Robinson, director of United Steelworkers District 7 unit, reportedly said the union is negotiating with the company to minimize the number of layoffs. Arcelor Mittal employs 15,543 hourly workers in the U.S.

The current move comes as part of a 35% drop in the company's temporary global output and its earlier announced plan to reduce production in North America by 40%.

U.S. Steel Corp. (X) and AK Steel Holding Corp (AKS) are the other companies that recently announced job cuts in North America.

Steelmakers are cutting back production as current economic woes has affected the construction industry, the largest consumer of steel, and the auto industry, the second largest consumer. In the appliance industry also, demand for steel is slowing down.

Analysts are of the view that the steel demand will not grow until mid-2009 as customers work through their own inventory stocks and cut their production of cars and appliances.

MT closed Monday's trading at $21.23, on a volume of 31K shares.

by RTT Staff Writer

For comments and feedback: contact editorial@rttnews.com

[JHeath]

I knew they had layoffs coming (my M-I-L works there), but I would not have expected this (high of a number of layoffs) at all.

[Southsider2k12]

This is a direct result from the slashing of production in the auto industry. This is going to be ugly.

[JHeath]

http://www.nwitimes.com/articles/2008/11/0...bf634182038.txt

ArcelorMittal profits fall, steelmaker warns of production cuts
BY ANDREA HOLECEK
holecek@nwitimes.com
219.933.3316 | Wednesday, November 05, 2008 | 36 comment(s)

ArcelorMittal reported third quarter profits of $3.8 billion on Wednesday -- a figure that was about $2 billion less than the $5.8 billion for the previous quarter -- and warned fourth quarter results will be far lower

The London-based company predicted fourth quarter EBITDA (earnings before interest, taxes, depreciation and amortization) will drop to between $1.5 billion and $3 billion, down from $8.6 billion in the third quarter as the steel company cuts production by 30 percent to deal with falling demand.

"We have announced today strong results for the quarter," said Lakshmi Mittal, the company's chairman and CEO. "....Looking forward, we have also announced necessary and responsible measures to ensure we are well adapted to the current environment.

"Our focus remains on cost-leadership and service to customers," Mittal said in a statement. "The current period of de-stocking requires that we make appropriate production cuts to seek to rebalance supply and demand, and we are also accelerating efforts to pay down debt."

The world's largest steelmaker shipped 25.6 million metric tons of steel in the third quarter, a decline of 4.2 million metric tons from second quarter, and a drop of 400,000 tons from the third quarter 2007.

The company's Flat Carbon Americas division, including plant in Indiana Harbor, Burns Harbor and Riverdale, has shipments of 6.9 million metric tonnes for the third quarter, a 500,000 metric ton drop from the previous period. The division's sales for the recent quarter were $8.5 billion, billion higher than the previous quarter, but its operating income fell to $600 million in the period from $1.4 billion for the quarter ending June 30.

[JHeath]

http://timesofindia.indiatimes.com/Busines...how/3748994.cms

ArcelorMittal warns of 2,444 job cuts
24 Nov 2008, 0133 hrs IST, AGENCIES


BURNS HARBOR: ArcelorMittal, the world's largest steelmaker, has warned that as many as 2,444 employees at a steel plant in northwestern Indiana could be laid off indefinitely in January.

The company announced that it had notified the United Steelworkers labour union and other interested parties about the possibility of an "indefinite layoff" at its Burns Harbor plant in the second half of January. The recent drop-off in global steel production and the company's previously announced plan to reduce production in North American by 40% factored into the decision, the company said.

"Potential work force reductions are a direct result of the extraordinary economic environment we are facing, and the company hopes to return workers to their jobs as market conditions warrant," ArcelorMittal said in a statement on Friday.

Jim Robinson, director of United Steelworkers District 7, said the union is negotiating with ArcelorMittal to minimise the number of layoffs. Union leaders at the international level "certainly knew what was going on," Robinson said. "They see the fact there aren't any orders. We're not making a lot of steel."

Robinson said the global economic crisis that has resulted in the cut in steel production calls for action by elected officials. "They need to step up to the plate and quit worrying about investment bankers and CEOs and start acting on behalf of average, middle-class American workers," Robinson said.

Luxembourg-based ArcelorMittal SA, which operates 21 plants in the United States, employs more than 320,000 people in over 60 countries.

[Homey]

http://timesofindia.indiatimes.com/Busines...how/3748994.cms

This is terrible for NW Indiana. Having a family member working in the steel industry, the rumors fly. The latest rumor was this may not be just a lay off, but possibly a closing down the road. It's not so much the economy but the owners displeasure with the recent union contract. Mittal owns so many plants around the world, Bethlehem may not be that important to them as a whole. I hope the rumor mill is wrong in this instance. We surely don't want to become another Allen Town or Pittsburgh.

[ChickenCityRoller]

This is terrible for NW Indiana. Having a family member working in the steel industry, the rumors fly. The latest rumor was this may not be just a lay off, but possibly a closing down the road. It's not so much the economy but the owners displeasure with the recent union contract. Mittal owns so many plants around the world, Bethlehem may not be that important to them as a whole. I hope the rumor mill is wrong in this instance. We surely don't want to become another Allen Town or Pittsburgh.

I can promise you that this has nothing to do with a grudge against the union. (I'll save my thoughts about this for a different thread some other day) There is no market right now, it's the only thing that they can do. They've turned off 6 of their ten BOF's (basic oxygen furnace) in the United State. Scrap metal went from an all time high of $815 a gross ton to $50 a gross ton in 45 days. That should give you a good idea of how bad things are. Stainless steel scrap which a year ago was being bought as scrap at $1.20 is now worth ten cents a pound and even then the scrap dealers don't have any orders.

[Homey]

Hope you're right CCR.

[Southsider2k12]

At this time there is no one to sell steel to. The home manufacturers in Indiana have collapsed, as has the auto industry. Those are the two biggest customers for NWI steel makers. Until the economy recovers things aren't going to be pretty. I don't know if that means a closing down the road, but this isn't because of a grudge over a contract. This is a legitimate business cycle problem.

[Roger Kaputnik]

Not pretty.

[ChickenCityRoller]

Those are the two biggest customers for NWI steel makers. Until the economy recovers things aren't going to be pretty.

Don't forget the RV Industry. Some of our suppliers are hurting big time with Elkhart falling flat on it's face. Most supply houses gurantee that they'll have x amount of millions of dollars of material for customer y to make the customer feel good about never running out of material. So these service centers bought the stuff at a dollar and then the demand from the R.V. industry just stopped and the price of steel plummeted. Now these service centers are stuck holding millions of dollars of inventory for a customer who doesn't need it and they can't sell it for more than 65% of what they paid for it. Shame on the mess.

[Homey]

I knew they had layoffs coming (my M-I-L works there), but I would not have expected this (high of a number of layoffs) at all.

My family member works for U.S. Steel and they're holding on thank goodness. Keeping my fingers crossed for them as well. At least they have hefty bonuses to look forward to. I hope they use it wisely and save most of it to weather the storm

[Southsider2k12]

Don't forget the RV Industry. Some of our suppliers are hurting big time with Elkhart falling flat on it's face. Most supply houses gurantee that they'll have x amount of millions of dollars of material for customer y to make the customer feel good about never running out of material. So these service centers bought the stuff at a dollar and then the demand from the R.V. industry just stopped and the price of steel plummeted. Now these service centers are stuck holding millions of dollars of inventory for a customer who doesn't need it and they can't sell it for more than 65% of what they paid for it. Shame on the mess.

Good point. I would be afraid to see what unemployment starts to look like around Elkhart/Goshen, and that area if this economy keeps on falling for a long period of time. Pre-fab homes and RVs are their lifeblood.

[Roger Kaputnik]

Not pretty.

[Ang]

What I don't understand is that we're in the middle of a war, one that has gone on far too long but a war none the less. Don't we need steel for munitions and tanks and jeeps that are getting blown up and such?

[ChickenCityRoller]

What I don't understand is that we're in the middle of a war, one that has gone on far too long but a war none the less. Don't we need steel for munitions and tanks and jeeps that are getting blown up and such?

OK, not even thinking about washing machines, dish washers, new construction, RV's, etc, in 2006 there were 7,667,066 sold in the US. That should put things in a better perspective.

[Homey]

I put in a comment in an earlier post re: my family member who works at U.S. Steel - Burns Harbor. They're hanging in there and the hourly employees will be getting their bonuses soon...along with some management. I hope they put some aside to use just in case they get the pink slips as well. I know they have laid off crews in the past few weeks. Everyone needs to tighten their belts. It's gonna be a bumpy ride

[JoeJ]

Ok, let us get this straight, believe it or not this is a union thing

The Union, I am not even sure the local number, but it's union hall is on 149. It is one of the strongest in the land. Mittlal, the man is a SOB, and the worst kind. He is worth like 30 billion. Is tired of taking crap from them. This is play to finally once and for all crush the union. Bill Clinton was going to do it in 1992ish, but then Bethleham backed down.

The union had its place in the US in the 20's through the early 80's and maybe a little beyond, but the crisis we are seeing in the car industry is about 80% union related. The big 3 bow to the UAW, the Japs do not and look who is hurting and look who is selling cars. There is probably more American steel in my Honda than anyones 3 GM trucks.

The Burns Harbor plant is still the most modern steel making plant in the nation. Sad, it is true, thanks to the Dems who make it harder to built new ones. So, they are going to be back to making steel before you know it. Just as soon as that union is put in its place.

Joe

[Ang]

Weil-McLain moved most of its manufacturing operations to SC. The plant in City was a union shop and they were making $20 plus an hour. In SC there is no union and they're making $10-13 an hour. This I know cause my Dad worked for Weil-McLain for almost 40 years. When they moved they offered my Dad a foreman position in SC. In City he was a member of the bargaining unit and made $37/hr. The position they offered him was at $20/hr.

Wirecraft (in Rolling Prairie) was a union shop and they were averaging $18-25 an hour. They moved their manufacturing operations to TX and NM--no union, wages around $7-10 an hour. This I know because I worked at the Wirecraft corporate office (in South Bend) during the time they closed the Rolling plant. I was in communication with the people in TX and NM and they told me what the starting wages were.

What makes the steel plants any different? Close up shop, sell the plant, reopen with no union, pay SIGNIFICANTLY lower wages.

[kharris]

Ok, let us get this straight, believe it or not this is a union thing

The Union, I am not even sure the local number, but it's union hall is on 149. It is one of the strongest in the land. Mittlal, the man is a SOB, and the worst kind. He is worth like 30 billion. Is tired of taking crap from them. This is play to finally once and for all crush the union. Bill Clinton was going to do it in 1992ish, but then Bethleham backed down.

The union had its place in the US in the 20's through the early 80's and maybe a little beyond, but the crisis we are seeing in the car industry is about 80% union related. The big 3 bow to the UAW, the Japs do not and look who is hurting and look who is selling cars. There is probably more American steel in my Honda than anyones 3 GM trucks.

The Burns Harbor plant is still the most modern steel making plant in the nation. Sad, it is true, thanks to the Dems who make it harder to built new ones. So, they are going to be back to making steel before you know it. Just as soon as that union is put in its place.

Joe

According to the chicago news last night the company and union are in negotiations regarding the layoffs and are close to an agreement that would limit the layoffs to around 400 instead of the 2400 previously reported.