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Mittal Steel USA idling 2 furnaces in response to reduction in demand

Mittal Steel USA idling 2 furnaces in response to reduction in demand

Mittal Steel USA said Thursday it is idling two blast furnaces indefinitely to bring production capabilities in line with reduced demand for light flat-rolled products.
The company, a unit of Mittal Steel Co. NV, which is in the process of buying Arcelor SA for about $32 billion (euro25.2 billion), is idling one blast furnace each in Cleveland and its Indiana Harbor facility in East Chicago, Indiana.
No employees will be laid off. Mittal Steel USA said the furnaces will undergo maintenance and be reactivated when market conditions warrant increased production levels.
"We are confident that we can maintain and service our customers' requirements working under this production configuration and are committed to maintaining our customers' business," said Michael Rippey, president and chief executive officer.
Mittal Steel USA, which recently moved its headquarters to Chicago, operates 10 blast furnaces. Spokesman David Allen said it was not yet known when the two furnaces will be shut down.
Steel industry analyst Michelle Applebaum of Applebaum Research in Chicago said in a note to investors that the drop in demand for U.S. steel that first became evident in June should reverse in the fourth quarter as foreign prices continue to rise faster than domestic ones.


Updated : 2021-06-14 20:50 GMT+08:00