U.S. Steel Unit To Halt Pipe Production
DALLAS (AP) — A Texas-based unit of United States Steel Corp. says it will stop making certain steel pipes used in the automotive and mining industries in an effort to focus on core businesses.
U.S. Steel Tubular Products Inc. says its departure from the drawn-over-mandrel pipe business will affect about 50 employees and result in a pretax charge of $25 million in the fourth quarter of 2008.
The company will close lines that make the pipes in Lone Star, Texas. The pipes accounted for less than 3 percent of U.S. Steel's tubular steel shipments last year.
The product line was part of Lone Star Technologies Inc., a Dallas-based welded pipe maker that U.S. Steel bought for $2 billion in 2007.