Steelmaker Cleveland-Cliffs recently announced plans to idle a production facility and lay off approximately 600 employees, attributing the decision to weak demand for steel in the automotive sector. The company indicated that operations at its Dearborn, Michigan plant would be scaled back this summer, with layoffs taking effect on July 15. This move includes the temporary idling of its blast furnace, basic oxygen furnace steel shop, and continuous casting operations in Dearborn.
Cleveland-Cliffs stated that these measures aim to improve operational efficiency and cost-competitiveness in response to current market conditions. The company expressed optimism that the implementation of President Donald Trump’s policies might eventually lead to a revival of their steel production at Dearborn once automotive production is re-shored.
In related news, the Cleveland Works C6 blast furnace is expected to resume full operation by mid-July, after having been idle since the previous year. While the Dearborn Works’ finish plants, such as the pickling tandem cold mill and continuous galvanizing line, will continue functioning, supporting the employment of an additional 550 workers.
Furthermore, Cleveland-Cliffs disclosed plans to lay off 630 employees in Minnesota as it idles its Minorca mine and part of its operations in Hibbing. These layoffs are set to start in May. A letter from Robert H. Fischer, an executive at Cleveland-Cliffs, indicated that the layoffs are anticipated to be temporary, though their duration could exceed six months. The letter also noted decreased domestic steel demand in 2024 due to a surplus of iron ore pellet inventory.
Cleveland-Cliffs’ share performance has seen a decline of over 13% in the past month, although it remains down by just 2.7% for the year. On the trading day, the company’s stock price increased by over 2%.