ArcelorMittal restart of East Chicago blast furnace returns employees to work

By Bowdeya Tweh, Times of Northwest Indiana
bowdeya.tweh@nwi.com

EAST CHICAGO | Shifts in operations at ArcelorMittal Indiana Harbor East will return some employees to work at the plant, but leave some without work within the next month.

United Steelworkers Local 1010 President Tom Hargrove said it's good the company decided to restart its No. 5 blast furnace July 20. He said about all of the employees who were laid off because of the idling in production have been brought back this week. The furnace was idled last fall.

Hargrove said it's difficult to say whether the restart is just a "blip on the screen" of economic recovery or whether it will be sustained.

"We're hoping so," Hargrove said. "We're optimistic, but we really haven't seen the signals yet. It's just a lack of orders. Even though starting the furnace is a good thing, they're (ArcelorMittal) only running three out of nine (blast furnaces) in the country."

However, bar company employees at the facility are facing layoffs this month after ArcelorMittal announced it was going to temporarily idle production at the electric furnace and the 12-inch bar mill.

Production was idled because of a lack of orders, and ArcelorMittal said in a statement the layoffs were a result of the economic downturn that caused a drop in demand. A large part of the products manufactured from this operation go to the automotive industry.

Hargrove said a number of the 300 to 400 employees affected by the layoffs may be able to work in agreements at the neighboring Indiana Harbor West facility or be cross-trained for different plant positions. USW Local 1010 represents about 3,500 employees at Indiana Harbor East.

Hargrove said the reduced production at steel mills has helped lower inventories at steel service centers, but the recent increase in orders may mean businesses are making purchases before prices are increased.

Blast furnace No. 6 remains idled at Indiana Harbor East. ArcelorMittal's blast furnace No. 7, which is still in operation, has the largest steel production capacity in the Western hemisphere, Hargrove said. Blast furnace No. 5 can produce 3,000 tons of crude steel per day while the No. 7 furnace can produce up to 11,500 tons of crude steel daily.