US Steel will idle 2 tubular-steel plants

Associated Press

NEW YORK

U.S. Steel said Monday that it will stop work at two tubular-steel manufacturing facilities and that it filed a complaint about unfair competition from foreign companies.

The company said it will idle facilities indefinitely in McKeesport, Pa., and Bellville, Texas, starting in August. It will cut about 260 jobs as a result. Tubular steel is primarily used by oil, gas, and petrochemical companies.

United States Steel Corp. said it filed a complaint with the U.S. Department of Commerce to stop “unfair trade by foreign competitors” on the American market. The Pittsburgh company said the complaint was joined by other domestic tubular-steel makers.

The closings will leave U.S. Steel with eight tubular-steel facilities in the U.S., and will enable the company to operate more profitably.

In the first quarter, U.S. Steel said prices for tubular-steel goods decreased because of competition from high levels of imports. Revenue from the company’s tubular steel operations fell 6 percent to $644 million, and net income from the division dropped to $24 million from $64 million.