United States Steel Corp.’s huge integrated steelmaking operation in Slovakia will furlough 2,500 people — about a fifth of its workforce — by the end of 2021 to deal with slowing demand for steel, rising imports and other issues, the company said Friday.
U.S. Steel Kosice President James Bruno in a statement said the company, which employs 12,000 people, was working four-day weeks for the second consecutive month to deal with “sharply worsening” market conditions that include rising production costs and a 5% increase in imports approved by the European Association of Steelmakers.
The imports are not required to meet the same environmental standards as U.S. Steel Kosice, which makes products for the automotive, consumer goods and other industries, and therefore have lower production costs, Mr. Bruno said.
“We are aware of the fact that this decision will affect thousands of families in the region, both in direct and indirect jobs,” Mr. Bruno said. “We are making this decision after careful consideration and must take action to protect our business and remain competitive.”
U.S. Steel Kosice is a subsidiary of Pittsburgh-based U.S. Steel.
Kris B. Mamula: kmamula@post-gazette.com or 412-263-1699
First Published: July 22, 2019, 1:13 p.m.
