Tenaris announced Thursday that production adjustments at its seamless mill, TenarisAlgomaTubes, will extend the temporary layoff of 230 union employees who were laid off earlier this month and result in the reduction of about 20 non-union employees.
It is anticipated that production will be temporarily interrupted until the third quarter of 2016 due to the prolonged industry downturn and while inventories work through the market.
The price of oil has worsened to levels not seen since 2003 and drilling activities have been reduced further, with the active rig count down more than 70 percent from the onset of the market crisis.
Additionally, unfairly traded imports of OCTG (oil country tubular goods) and line pipe has hit the tubular industry hard, with high inventories of these products on the ground in Canada.
“We are making tough decisions while navigating a market with high volatility and uncertainty,” said Guillermo Moreno, vice president and managing director of Tenaris for Canada. “But we are also looking beyond this crisis – maintaining a focus on the future, strengthening Tenaris’s positioning for market return and the challenges the new landscape may present.”
Tenaris has communicated to employees and informed the union, in accordance with the Collective Agreement in place.
Tenaris is aligning its workforce and production levels with market demand to better position the company for sustainable and long-term growth in the Canadian market.