April 8, 2009

United States Steel delays planned upgrade of Pittsburgh coke plant

PITTSBURGH

United States Steel Corp. is indefinitely delaying a $1 billion upgrade of a coke plant near Pittsburgh to cut costs as the global economic downturn saps demand for steel.

The Pittsburgh-based company, which owns the former Stelco Inc. in Canada, has said the project at the Clairton plant was expected to create more than 600 construction jobs and ensure thousands of existing jobs.

The improvements were meant to reduce environmental emissions at the plant, the country’s largest production facility for coke — coal that’s baked and used as a fuel in steel making.

The move was another indication of the toll taken on steel companies by the global economic crisis. U.S. Steel has laid off thousands of workers since late last year, when demand and prices plummeted for the metal used in everything from autos to appliances. Last year’s sudden slump came just weeks after some steel makers posted record profits.

The company said last month that it would temporarily idle some of its operations in Ontario, putting 1,500 people out of work. The former Stelco finishing and coking operations in Hamilton and the steelmaking and finishing operations at its Lake Erie Works near Nanticoke, Ont., are affected by the announcement.

Other Canadian steelmakers such as the former Algoma Steel, Arcelor Mittal Dofasco, Ipsco and distributor Russel Metals have also cut jobs and streamlined operations to deal with the industry downturn.

The Canadian Steel Producers Association was in Ottawa recently asking the federal government to develop policies that will boost the steel industry through a stronger manufacturing base and fair trade practices.

Canadian Press

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