Citing market headwinds, U.S. Steel will lay off up to 40 nonunion workers at its Minntac and Keetac taconite plants on Minnesota's Iron Range, officials said.
The news comes a week after disappointing third-quarter results and three weeks after Pittsburgh-based U.S. Steel idled one of its Minntac production lines in Mountain Iron in response to changing market conditions and softer demand for flat rolled and tubular steel.
Minntac and Keetac have about 2,200 workers combined at their mine and iron pelletizing plants in Mountain Iron and Keewatin, Minn. Fewer than 40 workers are expected to be affected by the layoffs, local officials said. Company officials would not disclose exact numbers.
U.S. Steel spokeswoman Amanda Malkowski on Monday said via e-mail that the decision to lay off workers came as the company puts in place a new operating structure it announced last month.
"Leaders examined organizational structures, work performed and spending to find opportunities to more efficiently execute our strategy," U.S. Steel said in a statement. "At the same time, we've been battling challenging market conditions, which means we need to truly become a leaner, more efficient organization faster. … Unfortunately, this was a necessary step in the execution of our strategy."
The layoffs are the latest indication that industry conditions are again changing for the iron ore and steelmaking industries.
Iron ore and its associated "taconite" ore pellets or "hot-briquetted iron" are key ingredients to making steel. Minnesota's Iron Range in the northeast pocket of the state is home to six mines and taconite plants.
Steel's newest downturn comes less than five years since the last global collapse, which beyond market conditions was also caused by swells of underpriced imports mostly from China but also from South Korea, India, Brazil and England.