Cleveland-Cliffs to Idle Weirton Plant Following Rejection of Tariffs on Tin Mill Products

https://icaro.icaromediagroup.com/system/images/photos/16057732/original/open-uri20240215-17-xghjy2?1708032241
ICARO Media Group
News
15/02/2024 21h21

Cleveland-Cliffs Inc. has announced its decision to indefinitely idle its tinplate production plant located in Weirton, West Virginia starting in April 2024. The move comes in response to the unanimous decision by all four members of the International Trade Commission (ITC) to reject the implementation of anti-dumping and countervailing duties on tin mill products, which were previously calculated by the Department of Commerce.

Approximately 900 employees will be impacted by this decision, and the company plans to issue a Worker Adjustment and Retraining Notification (WARN) notice today. However, Cleveland-Cliffs intends to offer relocation opportunities to these employees at other Cliffs' facilities, as well as severance packages.

The idling of the Weirton plant follows the filing of antidumping and countervailing duty petitions in January 2023 by Cleveland-Cliffs and co-petitioners, the United Steelworkers (USW). These petitions were related to allegations of unfair trade practices in the production of tin and chromium coated sheet steel products.

After investigations revealed evidence of dumping and subsidization, the Department of Commerce announced on January 5, 2024, that duties would be imposed on four countries: Canada, China, Germany, and South Korea. However, on February 6, 2024, the ITC unanimously rejected these tariffs, leading to the idling of the Weirton plant.

Lourenco Goncalves, Chairman, President, and CEO of Cleveland-Cliffs, expressed disappointment over the decision, stating that the company had worked closely with USW in an effort to save the Weirton plant. He emphasized the need for a level playing field and called for stronger trade laws to protect American industries and workers.

Despite this setback, Cleveland-Cliffs maintains its sales volume guidance for 2024, projecting 16.5 million tons of overall steel products. The company is North America's largest flat-rolled steel producer and also holds the distinction of being the largest manufacturer of iron ore pellets in the region. With operations in the United States and Canada, Cleveland-Cliffs employs approximately 28,000 individuals.

The decision to indefinitely idle the Weirton plant raises concerns about the future of domestic tinplate production and its impact on America's middle-class jobs and critical food supply chains. Cleveland-Cliffs intends to continue working with Congressional champions to advocate for improved trade laws and ensure the competitiveness of the American industry.

As the largest supplier of steel to the automotive industry in North America, Cleveland-Cliffs serves a diverse range of markets with its comprehensive offering of flat-rolled steel products. The company remains headquartered in Cleveland, Ohio, and remains committed to its role as a significant player in the steel industry.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

Related