U.S. Steel is idling a blast furnace in Illinois that Donald Trump visited five years ago as part of his self-proclaimed effort to “save” the U.S. steel industry five years ago as it balances production levels with The strike was influenced by the demands of customers influenced by the United Auto Workers union.
The Pittsburgh-based company said it decided to temporarily idle the “B” blast furnace at its Granite City Works plant to ensure steel production remains balanced with its orders. U.S. Steel also said it expected third-quarter adjusted earnings of about $550 million, above analysts’ average forecast of $485.6 million, which the company said took into account the impact of the UAW strike.
U.S. Steel rose as much as 3.1% in after-hours trading before giving up some of those gains. The company’s shares are up more than 20% this year after it announced last month that it was embarking on a strategic review after rejecting a takeover bid from rival Cleveland-Cliffs Inc.
In 2018, shortly after U.S. Steel announced it would reopen some plants, former President Trump visited the Granite City, Illinois, plant to tout the impact of its sweeping tariffs on steel imports. However, the plant’s long-term viability has long been questioned as the company continues to shift from older, conventional steelmaking facilities to plants that melt scrap and convert it into new steel.
The United Auto Workers union on Friday launched a strike against three major Detroit automakers, all of which are the largest consumers of U.S.-made steel. About a ton of steel is produced for every car in the United States, and researchers at the CRU warned that a strike lasting three to four months could force some steel mills to halt production.
“Following the announcement of UAW strike action, we are executing risk mitigation plans to ensure our smelting capacity remains balanced with orders,” U.S. Steel spokesperson Amanda Markowsky said in a statement. “We have decided to temporarily Idling Granite City Works’ Blast Furnace ‘B’ and reallocating production to other domestic facilities as needed.”
