It is reported that shifts in operations at ArcelorMittal Indiana Harbor East will return some employees to work at the plant, but leave some without work within the next month.
Mr Tom Hargrove president of United Steelworkers Local 1010 said that it is good the company decided to restart its number 5 blast furnace July 20th 2009. He said about all of the employees who were laid off because of the idling in production have been brought back this week. The furnace was idled last fall.
Mr Hargrove said that it's difficult to say whether the restart is just a blip on the screen of economic recovery or whether it will be sustained. He added that "We're hoping so. We're optimistic, but we really haven't seen the signals yet. It's just a lack of orders. Even though starting the furnace is a good thing, ArcelorMittal only running three out of nine blast furnaces in the country."
Mr Hargrove said that a number of the 300 to 400 employees affected by the layoffs may be able to work in agreements at the neighboring Indiana Harbor West facility or be cross trained for different plant positions. USW Local 1010 represents about 3,500 employees at Indiana Harbor East.
Hargrove said the reduced production at steel mills has helped lower inventories at steel service centers, but the recent increase in orders may mean businesses are making purchases before prices are increased.
Blast furnace number 6 remains idled at Indiana Harbor East. ArcelorMittal's blast furnace number 7, which is still in operation, has the largest steel production capacity in the Western hemisphere, Hargrove said. Blast furnace number 5 can produce 3,000 tonnes of crude steel per day while the number 7 furnace can produce up to 11,500 tonnes of crude steel daily.
Production was idled because of a lack of orders, and ArcelorMittal said in a statement the layoffs were a result of the economic downturn that caused a drop in demand. A large part of the products manufactured from this operation go to the automotive industry.
(Sourced from www.tradingmarkets.com)
