U.S. Steel is in talks to stop production at its century-old furnaces in Illinois. The shares fell to their lowest level in months.
The company plans to sell two blast furnaces at its Granite City Works facility in order to use pig iron in its mini-mills. As many as 1,000 jobs will be lost if the company transitions the facility to produce the raw material from steelmaking.
Granite City became the backdrop for a speech in July of last year after the restart of a steel furnace. After years of cuts in the American industry, he said the furnaces there were shining bright. The workers were called back in to work. The plant is going to stop all steel production.
The company didn't mention a word about the massive job loss or impact the decision will have on a skilled and loyal workforce, their families or their community. It is a tale of betrayal by the company.
The shares fell to their lowest point in three days.
The potential deal hasn't been finalized, but they could reach an agreement by the summer. U.S. Steel is moving away from traditional integrated mills in favor of pig iron as it expands its mini-mill steel production.
Many of the workforce at U.S. Steel's mini mills are non-unionized, which is contrary to the United Steelworkers representation at its traditional mills. The union doesn't want to become a pig iron supplier to the non-union operations.
The U.S. Steel contract with the United Steelworkers is set to expire in September.
The people are angry and disappointed, according to the United Steelworkers. When these things happen, they are frightened.
(Updates with shares beginning in first paragraph.)
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