U.S. Steel Idles Ohio Pipe Plant as Oil Price Drops

2015-01-10

United States Steel Corp would temporarily idle its pipe manufacturing plant in Lorain. Ohio has laid off 614 workers, largely due to the weak demand of the oil industry. The company sent a layoff notice to workers on Monday.

U.S. Steel's shares were down nearly 2 percent in the early trading on Tuesday.

A number of North American oil and gas companies have decided to cut capital spending following a sharp fall on oil prices. For example, Canada's Crescent Point Energy Corp said on Tuesday, it would cut its spending by about 28 percent in 2015.

Oil service companies, Schlumberger Ltd and Civeo Corp, have also laid off workers as oil and gas producers cut costs.

The layoffs at U.S. Steel will begin on March 8, a spokeswoman said. The Wall Street Journal reported the impending layoffs earlier on Tuesday.