Vallourec making more cuts at Youngstown operations
YOUNGSTOWN, Ohio - Faced with a continued weak oil and gas market, Vallourec Star will cut more jobs at its Youngstown operations.
The French company announced on Tuesday that reductions will occur across all areas of the company’s production and administrative departments for both hourly and salary positions.
The statement from Vallourec did not specify the number of jobs being cut, like it did this past June when it announced that the Youngstown workforce would be reduced by 60 to 80 jobs by August. A company official told 21 News that the latest reduction is in addition to the August cuts.
“While we have already taken substantial measures throughout the year, market conditions have not improved,” commented Judson Wallace, president of Vallourec Star. “The prolonged downturn continues to impact business.”
The operations in Youngstown produces pipe used in the oil and gas industry, which continues to slump due to low market prices.
All affected employees will receive a severance package according to Vallourec.
Local Vallourec employees do not belong to a labor organization. The rank-and-file rejected union membership by a vote of 148 to 367 in early 2014.
Because of reduced volume, Vallourec says it is undertaking a variable schedule operation, between its two Youngstown pipe mills. Team members will work between both mills.
Vallourec says the the new scheduling approach improves costs and start up time, allowing for a more lean and agile production process.
Vallourec Star says the steps are being taken to remain competitive over the long run.
The statement from the company expressed optimism that productivity improvements and investments in innovative technologies and equipment, such as a new state of the art piercer in Youngstown’s multi-stand pipe mill, will reinforce Vallourec’s position when business rebounds.
Vallourec told investors in July that year-to-year revenues were down by more than 23%.
The company is slated to release financial results for the third quarter and the past nine months on November 9.
