Vallourec lays off 900 in North American steel ops

Tubular steelmaker Vallourec cut a third of its workers in North America today because of the sharp downturn in the energy industry.

The France-based company said the "unforeseen, sudden, and significant drop of activity" in the oil and gas industry was to blame for the 900 layoffs across all of its operations in North America.

Vallourec did not specify which facilities would be impacted, it did not respond to requests for comment.

Vallourec operates an electric arc furnace (EAF) mill in Ohio, a pipe facility in Houston and at least a dozen other manufacturing facilities across Canada, Mexico, and the US, according to the company's website.

The price of the US benchmark, WTI, has fallen by 62pc to $25.13/bl since January as the coronavirus pandemic dramatically cuts demand and supply rises after Saudi Arabia and Russia ramp up production after failing to agree on output curbs.

The job cuts are the latest for steel companies that serve the North American oil and gas industry. Two weeks ago steelmakers US Steel and Tenaris both announced cuts and closures to tubular facilities in the US becasue of the downturn in the region's oil and gas industry.

By Rye Druzin