More layoffs coming to Granite City Steel

U.S. Steel Corp. plans to idle its coke operations at Granite City Works in Granite City, Ill., and lay off 390 workers.

This latest round of layoffs is in addition to the 1,600 workers who lost their jobs when U.S. Steel idled its mill in December.

The affected employees are 300 hourly workers and 90 managers, said John Armstrong, a spokesman for the Pittsburgh-based company.

The idling will occur in about three weeks, as demand for both steel and coke, which is used in the production of steel, has dropped, he said.

Granite City Works, the city's biggest employer, had more than 2,200 workers when it was fully operational.

Granite City Mayor Ed Hagnauer said he's still optimistic the idling won't turn into a permanent closure because U.S. Steel is continuing its $600 million upgrades on the mill.

"We're just crossing our fingers and saying our prayers," he said Thursday. "We're still hoping for a turnaround and we're going to wait and see if the economic stimulus will help the steel industry."

On Thursday, U.S. Steel named a new general manager of Granite City Works, but that does not have any bearing on how long the idling will last or if the mill will be closed permanently.

kvolkmann@bizjournals.com