Cleveland-Cliffs will idle a number of facilities, operations that are not “core assets" for the steelmaker, the company announced during its recent quarterly conference call.
The blast furnace, BOF, steel shop and continuing casting facilities at the Dearborn Works will be idled, to be replaced by more cost-efficient production when the No. 6 blast furnace at Cleveland Works is restarted.
The company will complete a full idle of the Steelton, Pa., rail facility, citing excess rail imports, continued underperformance and financial losses.
The Conshohocken, Pa., plate finishing facility will also be idled. The company said continued underperformance and financial losses were also to blame.
Finally, the Riverdale, Ill., compact strip mill will be idled due to an uncompetitive cost structure. The company will instead run material out of the nearby Indiana Harbor facility.
“We are taking decisive action to streamline our operations and enhance efficiency. This will drive meaningful fixed cost savings and sharpen our focus on our core strength: supplying steel to the automotive industry,” said LourencoGoncalves, president, CEO and chairman of Cliffs. “The decision to fully or partially idle certain locations was not taken lightly. These actions will allow us to consolidate operations, withdraw from loss-making businesses and deliver annualized savings exceeding $300 million.”
Additionally, Cliffs is no longer deploying capital toward the development of a transformer production facility in Weirton, W.Va. The company said changes in the scope from the project partner no longer meet Cliffs’ investment requirements.