Steelmakers Downsize Once Again

Wall Street Journal - Plants that were spared liquidation and changed hands through past recessions are shutting down in a bid to create a smaller, more efficient industry. Leading the move is ArcelorMittal, which bought out a multiplant U.S. producer a few years ago and figures it can do more with less by running fewer plants at higher capacity. U.S. steel production has risen from a year ago, but still remains far from robust. As of Saturday the nation's steel plants were operating at 63% capacity compared to 51% capacity at the same point in 2008.

Arcelor said the closing doesn't reflect on the workers or their productivity. Instead, it said, it reflects its new strategy. Mr. Mittal said the company is trying to reconfigure so about half of its production comes from developing countries, up from about 40% currently. Arcelor said it is expanding in Ukraine and South Africa and has restarted a plant in Romania because of increasing local demand.