ArcelorMittal USA has notified the United Steelworkers union and other required stakeholders about the "potential for an indefinite layoff of 2,444 employees" at its Burns Harbor, Indiana, steel facility starting the second half of January 2009, according to an ArcelorMittal spokesman. He emphasized that the notification was made in accordance with the Workers Adjustment and Retraining Notification (WARN) Act.

 

The Burns Harbor plant is ArcelorMittal's biggest in the US – shipping about 4.7 million short tons/year. Most of that is flat-rolled product (roughly 1.6 million st/year of hot-rolled coil; 1.2 million st/year of coated; and approximately 1 million st/year of cold-rolled coil). The mill also ships about 900,000 st/year of plate. Early indications are that only the plate mill and coke ovens at Burn Harbor will be spared from the late-January shutdowns. 

 

ArcelorMittal recently announced that it had reduced production in North America by 40%, the spokesman explained. "This is in-line with the temporary global production cuts of approximately 35% announced as part of the company's third-quarter earnings on November 5," he added.

 

ArcelorMittal filed the WARN Act notification "based on the best knowledge available today to fulfill its 60-day notification requirement under Federal Law," according to the spokesman. "We will provide additional updates to employees as more information becomes available," he told Platts. Local union leaders have questioned ArcelorMittal's timing and whether or not it has adhered to the 60-day notification period.

 

"Potential workforce reductions are a direct result of the extraordinary economic environment we are facing, and the company hopes to return workers to their jobs as market conditions warrant," said the ArcelorMittal spokesman. 

 

"This development is in no way a reflection on the professionalism and dedication of our Burns Harbor employees. ArcelorMittal appreciates their efforts and assistance during this challenging period." –Platts