Steel Giants Move Forward With Plans to Revive Idled Operations

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Will the steel industry rebound before the end of the year? ArcelorMittal USA Incorporated (East Chicago, Indiana), a subsidiary of global steel giant ArcelorMittal (NYSE:MT) (Luxembourg), decided in May to suspend all operations at its steel mill in Cleveland, Ohio. The company retained 250 workers to continue with the ongoing maintenance needs at the plant, which normally employs approximately 1,500 people. ArcelorMittal promised in a written statement that it would recall workers as soon as market conditions allowed.

More than 450 employees were laid off between October 2008 and February 2009, with an additional 912 employees forced to leave the plant in May. The blast furnaces were shut down late last year, and the plant's production was reduced to steel-finishing and galvanizing. The plant was operating at about 17% capacity by the end February. Production at the plant was 3 million tons in 2008, and during full production, the facility can produce more than 3.5 million tons per year.

While the need for steel has not returned yet to the levels experienced only last year, ArcelorMittal seems to recognize the need to get back on track in regard to manufacturing. The C-5 blast furnace, with a 29-foot 6-inch hearth diameter and 55,203 cubic feet of working volume, is slated to be restarted by mid-September. The C-5 has a capacity of 4,350 tons per day. Exercising due diligence, ArcelorMittal destocked the company's existing inventory. No figures have been given regarding how many employees will be called back, but some employees are expected to return soon. Along with the blast furnace, the hot mill, pickle line, tandom mill and galvanizing line are slated to return to production.

ArcelorMittal is not alone in its forward thinking and actions. In June, United States Steel Corporation (NYSE:X) (U.S. Steel) (Pittsburgh, Pennsylvania) called back more than 100 workers to assist in the restart efforts for one of two blast furnaces at the steel works in Granite City, Illinois. In December, U.S. Steel idled the plant, and more than 1,600 people were laid off. The plant, when operating at full capacity, can produce 2.8 million tons of steel per year. There have been discussions that as demand grows, U.S. Steel will restart operations at the Great Lake Works in Ecorse and River Rouge, Michigan.

A number of projects are depending on these plants to be up and running in the near future. A major project tied to the Granite City plant is the new $570 million addition to Gateway Energy and Coke Company LLC's metallurgical coke manufacturing plant in Granite City, Illinois. Gateway is a subsidiary of SunCoke Energy (Knoxville, Tennessee). A tie-in project at the facility involves the addition of a metallurgical coke conveyance system that will bring the coke from the new manufacturing plant to the steel mill. The cost of this new system is expected to be $11 million.

Additionally, ArcelorMittal is currently performing an economic evaluation for environmental upgrades at the Cleveland plant that will capture emissions and provide better dust control. The $20 million project is not scheduled to kick off until sometime next year. Both the Cleveland and Granite City plants have planned maintenance scheduled throughout the year, but with the downturn in the economy, both plants reduced maintenance budgets for the year. These reductions included hiring fewer outside contractors to assist with the shutdowns. For additional information, see related news item from September 15, 2008 - Construction Under Way on $570 Million Coke Plant in Illinois.

View Plant Profile - 1518814 1069859 1014868
View Project Report - 09004208 09003857 09004511 010004171 010004398

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project opportunity databases, market forecasts, high resolution maps, and daily industry news.