News Summary
Cleveland-Cliffs has announced the indefinite idling of its steel plant in Plymouth Township, Pennsylvania, leading to 107 layoffs effective June 30, 2025. This decision comes amidst weak demand and insufficient pricing for steel products. Additionally, the Steelton plant will also be idled, affecting 559 employees. The company’s strategic response to declining sales and market challenges includes plans to optimize operations across multiple facilities, potentially saving over $300 million annually. Nearly 950 workers across three locations are set to be impacted by these layoffs, raising community concerns.
Pennsylvania – Cleveland-Cliffs has announced it will indefinitely idle its steel plant located at 900 Conshohocken Road in Plymouth Township, Montgomery County, resulting in the layoff of 107 employees, which includes 10 salaried and 97 bargaining unit workers. The layoffs are scheduled to take effect on June 30, 2025, or within two weeks of that date. This decision marks a significant shift in the company’s operations, influenced by weak demand and insufficient pricing for its products.
Alongside the Conshohocken facility, Cleveland-Cliffs will also temporarily idle its Steelton plant, leading to an even larger impact with 559 layoffs. Similar to the Conshohocken facility, the layoffs at Steelton are also set to be effective by June 30, 2025, or within a two-week window. The Steelton plant specializes in producing railroad rails and steel used in heavy machinery, power generation plants, and military applications.
On May 2, 2025, Cleveland-Cliffs filed a Worker Adjustment and Retraining Notification (WARN) with the Pennsylvania Department of Labor & Industry, informing the state agency of these impending job losses. The decision to idle these plants, along with several others in the past months, comes as the company has reported falling sales and significant losses driven primarily by a decrease in demand, notably within the automotive sector.
As part of a broader strategic response to ongoing market challenges, Cleveland-Cliffs has indicated plans to fully or partially idle six facilities from March to May 2025, aiming to optimize operations and lessen financial strain. Collectively, these idling measures are projected to save the company over $300 million annually, in addition to further potential savings through enhanced overhead costs and productivity improvements.
The recent decision to idle operations at the affected facilities has led to immediate repercussions for nearly 950 workers across three plants, which also includes a facility in Riverdale, Illinois, where an estimated 281 employees are expected to be laid off. With almost a thousand jobs at stake, these measures have raised concerns within the communities surrounding the facilities.
Cleveland-Cliffs is based in Cleveland, Ohio, and operates a broad network involved in mining, steel production, and downstream manufacturing across the United States and Canada. The Conshohocken facility, which dates back to 1832, has experienced multiple ownership changes before being integrated into Cleveland-Cliffs in 2020 as part of a larger acquisition deal.
To compound the challenges faced, the company recently announced it would not proceed with the development of a planned transformer production plant in Weirton, West Virginia, due to changes in investment requirements, further illustrating the company’s cautious approach in the current market landscape.
The president and CEO of Cleveland-Cliffs highlighted that this decision to idle operations was made after detailed assessments of market conditions and operational efficiency. The proactive measures taken by Cleveland-Cliffs reflect the ongoing volatility in the steel market and wider economic factors impacting the steel industry’s profitability and future sustainability in Pennsylvania and beyond.
Deeper Dive: News & Info About This Topic
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- PennLive: Ohio Company Plans to Close Facility
- Encyclopedia Britannica: Steel Industry
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- Google News: Steel Industry News
