Bloomberg reported that ArcelorMittal will close its Indiana Harbor Long Carbon plant in East Chicago indefinitely because of a drop in demand.

ArcelorMittal said in a statement that "The global economic downturn has caused a reduction in the demand for the company's products. This indefinite closure and corresponding layoffs reflect measures the company is being forced to take around the world to adapt to the market's situation."

The plant to be idled makes steel bar used in autos and heavy equipment. An electric furnace and 12 inch bar mill will be idled.

The larger Indiana Harbor works includes several other facilities, including blast furnaces and mills that will not be affected.

Mr Steven Wagner VP of United Steelworkers Union Local 1010 said that the jobs would be cut starting in 60 days and about 400 workers will be affected.

The plant is part of a larger facility that employs about 5,000 union workers and hundreds of nonunion workers.

(Sourced from Bloomberg and AP)