The future for the U.S. Steel Granite City Works plant is uncertain after the company warned workers of a pending layoff. About 2,000 employees at the plant could be affected. The flat-rolled steel made locally is used mainly by the oil industry, which has cut back production.
The plant in Granite City supplies steel product for a U.S. Steel plant in Texas, which makes pipe for the oil industry. The company gave a 60-day notice to its workers as required by federal law and says it is considering the closing as part of consolidation efforts throughout North America. The layoff, however, could be temporary until orders build up for more steel product. The company planned a May layoff in Granite City for the same reason, but cancelled the decision as business picked up for the summer. U.S. Steel closed a plant near Birmingham, Alabama, earlier this year, cutting about 11-hundred jobs.