The steel industry in East Chicago is taking another hit. ArcelorMittal (NYSE: MT) plans to shut down a 114-year-old facility in the city, which would impact more than 300 workers. The company says the "great majority" of those workers could move to other facilities. Earlier this month, United States Steel Corp. (NYSE: X) announced plans to idle its East Chicago steel mill and lay off nearly 370 workers. ArcelorMittal says the plant has lost money each year since 2011. It produces steel bars used in the automotive industry.

The company says it plans to idle the facility in March, then shut it down permanently over the next three months.

It's the latest hit to the steel industry in East Chicago. U.S. Steel says imports taking up market share and falling oil prices have led to its cuts. The company does say it hopes to restart operations and bring back employees when market conditions improve.

Sources: ArcelorMittal, The Times of Northwest Indiana

January 23, 2015

News Release

CHICAGO, Ill. - ArcelorMittal will idle its Indiana Harbor Long Carbon (IHLC) facility beginning with the electric arc furnace on March 1, 2015, followed by the rolling mill operation in Q2 2015, pending customer requirements.

Indiana Harbor Long Carbon was first idled in 2009 following the economic recession and was brought back online in 2010 but has been challenged by low utilization, scheduling inefficiencies and high costs. As a result, the facility has incurred losses since 2011.

We have been negotiating with the United Steelworkers (USW) since mid-November to maintain the rolling mill as an economically viable operation using outsourced billets. We no longer view this option as feasible given the union’s requirement that this change be linked to increased production bonuses at the rolling mill, equivalent to an increase of approximately $4,000 annually per hourly employee at current production levels.

This development will impact approximately 246 USW-represented employees who we fully expect to relocate to other ArcelorMittal facilities in Northwest Indiana. We are also working to absorb approximately 58 salaried employees into our Northwest Indiana operations. As a result, we expect the great majority of current IHLC employees to find other opportunities within the company.

However, this decision entails the potentially permanent loss of more than 300 direct jobs as well as indirect jobs associated with the facility.

ArcelorMittal extends our appreciation to our customers. No other ArcelorMittal facilities are affected at this time.

About ArcelorMittal

ArcelorMittal is the world's leading steel and mining company, with a presence in more than 60 countries and an industrial footprint in over 20 countries. Guided by a philosophy to produce safe, sustainable steel, we are the leading supplier of quality steel in the major global steel markets including automotive, construction, household appliances and packaging, with world-class research and development and outstanding distribution networks.

Through our core values of sustainability, quality and leadership, we operate responsibly with respect to the health, safety and wellbeing of our employees, contractors and the communities in which we operate.

For us, steel is the fabric of life, as it is at the heart of the modern world from railways to cars and washing machines. We are actively researching and producing steel-based technologies and solutions that make many of the products and components we use in our everyday lives more energy-efficient.

We are one of the world’s five largest producers of iron ore and metallurgical coal and our mining business is an essential part of our growth strategy. With a geographically diversified portfolio of iron ore and coal assets, we are strategically positioned to serve our network of steel plants and the external global market. While our steel operations are important customers, our supply to the external market is increasing as we grow.

In 2013, ArcelorMittal had revenues of $79.4 billion and crude steel production of 100.5 million tons, while iron ore production reached 64.4 million tons.

ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS). For more information about ArcelorMittal please visit: corporate.arcelormittal.com or usa.arcelormittal.com.

Source: ArcelorMittal