US Steel will temporarily idle primary steelmaking operations at its Fairfield, Alabama works due to reduced steel demand, a company spokeswoman confirmed Wednesday.
While the blast furnace and caster at will be idled, the tube finishing operations at Fairfield will continue to run at reduced levels.
Union officials say the idling will take effect May 19, and that there is no set timetable for resuming operations.
The suspension of production at Fairfax Works will presumably affect most of the plant's 1,700 workers. US Representative Artur Davis, D-Birmingham, commented, "This is one more reminder of how the recession is affecting Alabama families. It is devastating, and since Fairfield has always depended on US Steel, there will be significant ripple effects."
The city of Fairfield was founded as a company town for workers of the Tennessee Coal, Iron and Railroad Company, which was purchased in 1907 by US Steel. At its peak during World War II, US Steel's Fairfield Works employed over 45,000 workers.
US Steel has been severely affected by the economic downturn, posting a $439 million net loss in the first quarter of 2009.