Penn Mutual Asset Management CIO Mark itnstall weighs on the last decision of President Donald Trump to impose a 25% rate on imports of cars in the United States
The Steelmaker Cleveland acidules announced this week that it would inactivate one of its production factories and will deposit around 600 workers, citing the sweet demand for steel used in automotive manufacturing.
Cleveland-Cliffs said that he was going to inactivate parts of his factory in Dearborn, Michigan this summer and to fire around 600 employees because of what he said was “the current reality of low automobile production in the United States”
The company plans to temporarily turn its high furnace, its basic basic oxygen steel shop and its continuous flow factories in Dearborn. The layoffs would take effect on July 15.
“These actions will allow the company to operate more efficiently and more competitively for the current market environment,” Cleveland-Cliffs said in a press release. “We believe that the policies of President Trump take full effect and that automobile production is reprimanded, we should be able to resume steel production in Dearborn.”
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Cleveland-Cliffs said the layoffs were due to the request of steel in the soft automotive industry. (Dustin Franz / Bloomberg via Getty Images / Getty Images)
Cleveland-Cliffs said that in mid-July, he expects his Haut Fourneau Cleveland C6 to be returned in the middle of an operation after being idle last year. He added that the finishing factories of Dearborn Works, including the Mickling Tandem Cold Mill and the continuous galvanization line, will continue to operate and support the continuous employment of 550 other workers.
| Teleprinter | Security | Last | Change | Change % |
|---|---|---|---|---|
| Clf | Cleveland-Cliffs inc. | 9.33 | +0.20 |
+ 2.25% |
The company’s layoffs in Michigan follow the announcement of Cleveland-Cliffs which he dismissed 630 employees in Minnesota while he slows down his mine in a minor and slowed down part of his mining hibbing operations. These layoffs would start in May.
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A freight train transports steel to Cleveland-Cliffs Inc. Cleveland Works Steel Mill in Cleveland. (Luke Sharrett / Bloomberg via Getty Images / Getty Images)
A letter from Robert H. Fischer, a framework for human resources and labor relations from Cleveland, which was obtained by WIDI ABC explained that the company provides that layoffs will be temporary.
“We cannot predict their length, which can exceed six months,” said the letter.
The letter also cited the “decrease in the domestic demand for steel” in 2024, which contributes to this decision due to an accumulation of excessive inventory of iron granules.
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Cleveland-Cliffs’ shares decreased by more than 13% in the last month, but are not down 2.7% for the day. Its share price increased by more than 2% on the day of mid-afternoon on Thursday.
