Vallourec responding decining oil market with shutdown, layoffs

YOUNGSTOWN

The decline in the oil and gas market hit home when Vallourec Star announced a three-week shutdown at its pipe-producing plant here.

Workers at the plant, that employs about 700, will be able to schedule vacation, paid time off or file for unemployment.

“We have already taken some measures to adjust production schedules, negotiate with suppliers and minimize the use of contractors,” the company said Wednesday. “The economic realities we are facing require additional action.”

Youngstown’s Vallourec Star is a subsidiary of France-based company Vallourec USA. The facility started its production of small-diameter pipe for sales in the U.S. and Canadian markets in October 2012.

The announcement came after the company said in late January it was developing alternative operating plans and schedules and working with suppliers and customers to monitor activity.

Workers will return to work after that blackout period. The company will offer a six-month voluntary layoff for those interested. Health care coverage will continue during that six month period.

“We are carefully monitoring market developments and will continue to adapt quickly to this unstable business environment,” the company said.

The price for crude oil was floating between $48 and $55 Wednesday evening, according to Bloomberg Business.

Read more about the situation and future assessment in Thursday's Vindicator or on Vindy.com