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Uncertainty in the Steel Industry (Editorial)

Editorial
1 min read

Two recent developments linked to the steel industry highlighted the uncertainty roiling the sector so important to Arkansas’ economy.

The first was the announcement that Tokusen USA Inc., a maker of specialty steel wire, will close its Conway plant in March, leading to the loss of 200 to 250 jobs. The company cited a changing market and rising costs from the 25% tariff on imported steel imposed by the first Trump administration.

The second involved reports that Cleveland-Cliffs planned to partner with Nucor to make an offer to buy U.S. Steel. Cleveland-Cliffs would buy U.S. Steel for cash and then sell off the Big River Steel subsidiary to Nucor, sources told CNBC.

The Biden administration blocked a planned takeover of U.S. Steel to Nippon Steel, a Japanese company, citing national security concerns. President Donald Trump has also opposed the sale.

“International trade is complicated and volatility is hard — and that’s for all manufacturers,” Jamie Gates, executive vice president of the Conway Area Chamber of Commerce, told Arkansas Business in reference to the Tokusen announcement.

Let’s hope that the state’s leaders are prepared to meet this volatile time in the steel industry.

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