U.S. Steel to Idle Ohio Pipe Plant as Oil Prices Drop

By Abinaya Vijayaraghavan

United States Steel (X) said it would temporarily idle its pipe manufacturing plant in Lorain, Ohio, and lay off 614 workers, largely due to weak demand from the oil industry.

The company sent a layoff notice to workers Monday, citing weak market conditions.

U.S. Steel's shares were down nearly 2 percent at $24.88 in early afternoon trading Tuesday.

A number of North American oil and gas companies have cut capital spending plans following a sharp fall in oil prices, which have more than halved since mid-2014.

Canada's Crescent Point Energy (CPG), for example, said Tuesday it would cut its spending by about 28 percent in 2015.

Oil service companies Schlumberger (SLB) and Civeo (CVEO) have also laid off workers as oil and gas producers cut costs.

The layoffs at U.S. Steel will begin March 8, a spokeswoman said. The Wall Street Journal reported the impending layoffs earlier Tuesday.

-With additional reporting by Ankit Ajmera in Bangalore, India.