Lonestar Steel Workers Face Possible Cut Backs

U.S. Steel predicts 50 workers to be affected by production line closures.

NEWS RELEASE, Jan. 5, 2009 -- U. S. Steel Tubular Products, Inc., a subsidiary of United States Steel Corporation announced today that it will exit the drawn-over-mandrel (DOM) tubular products business and close the DOM lines at its Texas Operations Division in Lone Star, Texas. This will result in a pre-tax charge of approximately $25 million in the fourth quarter of 2008.

In 2008, U. S. Steel Tubular Products shipped approximately 50,000 tons of DOM products, which accounted for less than 3 percent of the company's tubular shipments for the year. All current booked orders will be produced and shipped consistent with original commitments. U. S. Steel Tubular Products is notifying its customers of its decision to exit the business. DOM products are used by automotive manufacturers, mining operations, fluid power component manufacturers and steel service centers.

Approximately 50 employees will be affected by the closure of the DOM lines.