US Steel Tubular Products, Inc., a subsidiary of US Steel Corporation, announced on January 5, 2009 that it will exit the drawn-over-mandrel (DOM) tubular products business and close the DOM lines at its Texas Operations Division in Lone Star, Texas. This will result in a pre-tax charge of approximately $25 million in the fourth quarter of 2008.
US Steel Tubular Products shipped approximately 50,800 mt of DOM products, which accounted for less than three percent of the company's tubular shipments for the year 2008. All current booked orders will be produced and shipped consistent with original commitments. US Steel Tubular Products is notifying its customers of its decision to exit the business. DOM products are used by automotive manufacturers, mining operations, fluid power component manufacturers and steel service centers.
The closure of the DOM lines will affect approximately 50 employees.