Evraz Regina Steel (formerly known as IPSCO), the largest steelmaker in Western Canada, will shut down operations for one week starting April 27 at its Regina, Saskatchewan facility due to the economic worldwide crisis, Evraz Inc. NA announced Thursday.
As a result, 250 employees will be temporarily laid off but are expected to be called back to work May 4. However, a dozen administrative and technical staff will be laid off indefinitely around the same time.
“A lack of steel orders, and the need to balance production with that weakening demand, is forcing Evraz Inc. NA Canada to schedule a one-week idling of our steel mill later this month,’’ said Greg Maindonald, vice-president and general manager of Evraz Steel, Regina, in a memo to employees .
Additionally, Evraz plans a 21-day maintenance closure of its Regina steelmaking facilities starting May 18, which will result in 170 layoffs. Mr. Maindonald explained that this closure was originally scheduled for October but was moved to May in hopes that demand will have increased upon completion of the maintenance work. However, Mr. Maindonald warned that if demand does not recover, operations will remain halted until conditions improve. On the bright side, the firm claims its large-diameter pipe business has enough bookings to keep the Regina spiral mill busy through 2009.
Last month, Evraz reduced production from seven days to five days a week at its Regina mill, laying off 25 percent of its 325 steel mill employees. In January, the company announced that about 110 workers would be laid off at its two-inch pipe mill and 24-inch pipe mill in Regina.
In addition to its steel mill, Evraz Regina Steel's facilities also include a coil processing plant and tubular operations, which produce OCTG, and small and large diameter line pipe. Russia's Evraz acquired the company from TMK IPSCO in March 2008.