UPDATE 1-U.S. Steel to idle Ohio pipe plant as oil prices drop

Tue Jan 6, 2015 12:20pm EST
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By Abinaya Vijayaraghavan

Jan 6 (Reuters) - United States Steel Corp said it would temporarily idle its pipe manufacturing plant in Lorain, Ohio and lay off 614 workers, largely due to weak demand from the oil industry.

The company sent a layoff notice to workers on Monday, citing weak market conditions. (bit.ly/1BE4HAs)

U.S. Steel's shares were down nearly 2 percent at $24.88 in early afternoon trading on Tuesday.

A number of North American oil and gas companies have cut capital spending plans following a sharp fall in oil prices, which have more than halved since mid-2014.

Canada's Crescent Point Energy Corp, for example, said on Tuesday it would cut its spending by about 28 percent in 2015.

Oil service companies Schlumberger Ltd and Civeo Corp have also laid off workers as oil and gas producers cut costs.

The layoffs at U.S. Steel will begin on March 8, a spokeswoman said. The Wall Street Journal reported the impending layoffs earlier on Tuesday. (on.wsj.com/14i2EHH) (Reporting by Abinaya Vijayaraghavan in Bengaluru; Additional reporting by Ankit Ajmera in Bengaluru; Editing by Ted Kerr)