Is Essar next?

[Huggy85]

U.S. Steel to shutter Canadian operations

http://ctv2.theglobeandmail.com/servlet/story/RTGAM.20090303.wstelcostaff0309/business/Business/businessBN/ctv-business

TORONTO — Even through deeply troubled times like the Great Depression and a stint in bankruptcy protection, the mighty Stelco operation continued to run, its steel mills fuelling the Southern Ontario city of Hamilton.

On Tuesday, the global recession and a bruising slump in the automotive industry forced the operation's new owners to put it in mothballs.

United States Steel Corp. said Tuesday that it is indefinitely halting its entire Canadian steel production, putting about 1,500 people out of work at the former Stelco plants in Hamilton and Nanticoke, Ont.

Most of the operations and all of the steel production at the two plants, picked up by the Pittsburgh-based steel giant when it bought struggling Stelco less than 18 months ago, will be shut down over the next few weeks, leaving just a few hundred people on the job. It's the first time either of the plants has been shut.

[1337]

Essar has more plants around the world. Which most are doing fine, they will carry the Sault.

[tired-n-cranky]

Essar has more plants around the world. Which most are doing fine, they will carry the Sault.

Keep on dreaming. Profitable centers vs. loss centers = loss centers closing.

Why keep a horse fed when it loses the races and isn't anyones pet?

[starterwiz]

This is all good news for the Soo.
When the economy bounces back, and it will, we will be in a good position to capture a larger slice of the pie.
The owners aren't stupid, They can see the big picture, and have invested heavily into the obvious advantages that we have here; easy shipping, cheaper labour force, and close proximity to natural resourses.
And now a former Saultite is in charrge of the US steel operations?
Yeah....Baby!

[Jack Daniel]

Essar Algoma is Essars only North American steel plant. If we close they will lose all of the customers in NA to other companies.

[Huggy85]

Essar Algoma is Essars only North American steel plant. If we close they will lose all of the customers in NA to other companies.

not!

Essar Steel Increases Foothold in North America Aquiring Minnesota Steel

http://www.azom.com/news.asp?newsID=8275

[mags]

Essar should be all right at least for the foreseeable future.

[tired-n-cranky]

easy shipping, cheaper labour force, and close proximity to natural resourses.


Easy shipping? Yeah ok.. Lake Superior is a LOT farther away from the St. Lawrence Seaway than Lake Ontario is for Waterway freight for incoming iron ore, etc. Also a LOT farther for land shipping.

Cheaper labour force? We are talking about the union here, it won't be any cheaper than southern Ontario.

Natural resources? And where exactly near the Sault does the iron ore come from?

[kodak57]

Natural resources? And where exactly near the Sault does the iron ore come from?

right now marquette michigan.. a 32 hour unload return to asi docks round trip

[rmkryan]

They get it from Wisconsin.There was talk about openiing up he mine in Wawa and getting it from there.

[Jack Daniel]

not!

Essar Steel Increases Foothold in North America Aquiring Minnesota Steel

http://www.azom.com/news.asp?newsID=8275

Nice try Huggy, Minnesota is just a hole in the ground. It's a former open pit ore mine. It will be 3 years before they sinter iron and close to 5 years before they make any steel. Like I said, Essar Steel Algoma is the only steel plant Essar has in North America.

[Bufford]

pull your heads out of the sand

[Huggy85]

Nice try Huggy, Minnesota is just a hole in the ground. It's a former open pit ore mine. It will be 3 years before they sinter iron and close to 5 years before they make any steel. Like I said, Essar Steel Algoma is the only steel plant Essar has in North America.

I suggest that you ask anyone that works at Essar right now how comfortable they feel. My understanding is that there are still no orders coming in. Being the only supplier for a product nobody wants is not a good place to be.

[Ultra54]

As usual the truth lies somewhere in the middle. If I could read the future I would get the 649 lottery numbers. Whats the sense talking about, over and over, something that nobody knows anything about? Ask ANYONE right now if they feel comfortable and secure in their jobs.

[Reckidecky]

That's right Ultra,,,Well said. Essar wants to establish themselves in North America including a bunch of very nice people from India.

Resilience Wins.

[Madmax]

ESAAR has a hold in the american market. Therefore there is no real reason for them to shut down Algoma Steel, but in hard times there will be no doubt lay offs as that is something a huge company will do to save costs.

I personally don't think Algoma Steel will shut its doors anytime in the forseeable future.

[Huggy85]

http://sootoday.com/content/news/full_story.asp?StoryNumber=38049

"Essar Steel Algoma is laying off another 80-100 hourly employees effective Sunday says its Manager of Corporate Communications Brenda Stenta.

There are currently 180 hourly employees on layoff and Stenta says that further layoffs are imminent if there is no improvement in market conditions."

[Super Gram]

Thats better than laying everyone off like the car manufacturers are.

[stupefied]

Ask ANYONE right now if they feel comfortable and secure in their jobs.
Many of us feel comfortable and secure in our jobs.