Global steel giant ArcelorMittal has idled the 84-inch hot strip mill at its Indiana Harbor facility in East Chicago, but company and union officials say none of the 300 workers employed there will be laid off as a result.
Mike Millsap, District 7 director of the United Steelworkers, said the mill was permanently shut down one day last week and came as no surprise.
"It was part of their (ArcelorMittal's) capital plan," Millsap said.
He said the plan was to not lay off anyone as a result of the shutdown.
Jack Tipold, recording secretary for United Steelworkers Local 6787 in Chesterton, said the 300 steelworkers probably would be absorbed elsewhere in the company, whether it be in another part of the massive Indiana Harbor mill, Burns Harbor, Riverdale, Ill., or out of the area.
"I don't believe any one of those 300 people will miss a single paycheck," he said.
Tipold said the Burns Harbor mill is now hiring for entry level positions.
Mary Beth Holdford, ArcelorMittal spokeswoman, said the steel company is considering all options at its mills in the U.S. and beyond, including Indiana Harbor, to "optimize its assets" in the U.S.
She said this is in support of the company's Action 2020 program, which she called a strategic roadmap that aims to achieve targeted financial improvements for the company by 2020.
Action 2020 was launched at ArceloMittal's fourth quarter and full year 2015 earnings announcement.
"Arcelor/Mittal expects to optimize our assets in the United States without layoffs by leveraging natural attrition," Holdford said.
ArcelorMittal is the world's largest steelmaker, with $63.6 billion in global sales in 2015, according to the company's website.
Its Indiana Harbor complex in East Chicago is the largest integrated steel making facility in the U.S., with 4,770 employees, 4,124 of whom are hourly employees and 895 of whom are salaried employees.