Cleveland-Cliffs steel mill in Conshohocken to close indefinitely, resulting in layoffs.

Cleveland-Cliffs, a prominent player in the U.S. steel industry and the second-largest steelmaker in the country, has announced the temporary, indefinite idling of three plants—two located in Pennsylvania and one in Illinois. This decision is attributed to a notable decline in demand for steel products, particularly amid falling prices.

The affected facilities, which will cease operations at the end of June, include the Conshohocken plate-finishing works, situated in Plymouth Township, Pennsylvania. This plant employs around 80 workers and plays a significant role in processing heavy steel plates for various sectors, including construction and shipping. Another impacted location is the rail mill in Steelton, near Harrisburg, Pennsylvania, which has approximately 550 employees. Additionally, a hot-rolling mill in Riverdale, Illinois, employing around 400 workers, will also be idled.

Despite the significant workforce reduction, estimated to affect over 2,000 steelworkers following layoffs earlier this year in Cleveland-Cliffs’ iron mines in Minnesota and an automotive-steel facility in Dearborn, Michigan, the company has clarified that these actions are not a direct result of federal steel tariffs. A spokesperson emphasized that the closures stem from weak market conditions rather than the protective tariffs imposed on steel imports.

Lourenco Goncalves, the president of Cleveland-Cliffs, has expressed support for the current administration’s efforts to maintain higher tariffs on imported steel, suggesting that these measures could eventually foster job growth within the U.S. steelmaking sector. Last fall, Goncalves engaged with union leaders and government officials to advocate for increased protection against unfair foreign competition, particularly from nations such as China that have been found to export subsidized steel at unsustainable prices.

With Cleveland-Cliffs reporting a drop in revenue due to diminishing orders from vital markets, including the U.S. automotive industry, the company anticipates mounting pressures in the upcoming fiscal quarters. Following a review of the first-quarter earnings for 2025 on May 8, Cleveland-Cliffs is expected to outline its strategies to navigate this challenging market landscape.

Historically, the Conshohocken plant has transitioned through multiple ownerships, originally established by the locally based Alan Wood Steel company in 1832. Since its acquisition by Cleveland-Cliffs in 2020, along with several other U.S. steel facilities, it has focused operations that align with the company’s core business of flat-rolled steel production. As Cleveland-Cliffs continues to reevaluate its position in the market, the outcome of these strategic shifts remains to be seen amidst an evolving industry landscape.