Ispat Inland Inc. is taking further steps to ensure its competitiveness by reducing its salaried workforce.
About 130 salaried positions will be eliminated — most of them by the end of this month — as part of the current workforce reduction. Many of the affected employees will be eligible for pension benefits, as well as severance pay. A company-paid job-search center will be available to those who are interested in seeking other employment.
The announced workforce reduction is part of Ispat Inland’s continuing efforts to reduce costs, increase productivity and improve products and customer performance. Last year alone, the company invested $100 million to upgrade its ironmaking operations; expanded an alliance with Nippon Steel Corp., the world's technological leader; and introduced new products to improve tomorrow's cars and trucks.
Yet financial results have been disappointing for Ispat Inland and other steel producers — despite dramatic savings enjoyed by major competitors through new labor contracts and the elimination of pensions and health care for employees and retirees.
"Management does not take this step lightly, but our focus has to be on making Ispat Inland profitable in order to secure its future," said Louis L. Schorsch, President and CEO. "We have not met that standard over the past several years, and the competitive landscape is only getting tougher."
Inland Steel Co. peaked at more than 26,000 employees in 1979, when its annual steel shipments totaled 8.6 million tons. The company, which became Ispat Inland in 1998, shipped 5.7 million tons last year. Current employment is about 6,900.
Ispat Inland Inc. is a subsidiary of Ispat International NV, one of the top 10 steel companies in the world, with integrated steelmaking facilities in six countries and annual shipments in 2002 in excess of 15 million tons. Ispat Inland manufactures a broad range of semifinished and finished flat and bar steel products and is one of the world's lowest-cost steel producers. In addition to Ispat Inland in East Chicago, Ind., USA, Ispat International has major steelmaking facilities in Canada, Mexico, Trinidad, France and Germany. Ispat International is a member of The LNM Group, the world's second-largest and most global steel group, which also operates in Algeria, Czech Republic, Indonesia, Kazakhstan, Romania and South Africa.