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Tenaris announced today the layoff of 90 employees and the reduction in production at the Sault Ste. Marie, 25 percent, partly because of increased imports into Canada resulting from US President Donald Trump's duties on steel and aluminum.
The TenarisAlgomaTubes plant suspends operations for three weeks starting December 15.
This decision comes as Tenaris President Paolo Rocca faces serious legal problems in Argentina. Bloomberg announced on Wednesday that an Argentine judge had charged the majority shareholder of billionaire Tenaris in a corruption case.
The text of today 's announcement of Tenaris is as follows:
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Tenaris announced on November 29, 2018, that it was reducing production levels at its seamless pipe manufacturing plant in Sault Ste. Marie, Ontario, 25% because of market challenges. As a result, Tenaris anticipates the temporary layoff of approximately 90 union employees as of December 15, 2018. Tenaris has contacted employees and union leaders during a public meeting held today. ; hui.
The market is challenged by three main factors:
- A surge in imports of energy tubes converted to Canada by third countries prevented from exporting to the United States due to Section 232 measures
- Decrease in AlgomaTubes' export sales to the United States
- Challenges in the domestic oil and gas market, where bottlenecks in export affect the price that Canadian oil and gas customers receive for energy production.
"These difficult decisions result in significant volumes of energy tube imports, unresolved trade lawsuits against Canada, and adjustments in the activities of oil and gas producers." Canadian gas because of the growing price gap for their energy, "said Guillermo Moreno, President – Canada Tenaris. "Our production levels remained above those of 2016 when we resumed operations. We try, as far as possible, to reduce the impact on our employees. We remain committed to domestic manufacturing and serving the Canadian energy sector. "
To adapt to the circumstances, the AlgomaTubes Tenaris plant will suspend its operations for three weeks starting December 15, 2018. Operations will resume on January 7, 2019.
Tenaris continues to work with industry and governments to defend against the surge in steel imports and to fight for steel to gain access to the US market and bring Canada's energy to market.
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