Tenaris layoffs due to oil slump

With the price of crude oil decreasing, Tenaris has had to layoff approximately 100 of their workers at its welding pipe mill in Blytheville, Arkansas (US).

Tenaris’ decision

Tenaris explained: "Adjustments are due to the price of oil, which hit a 12 year low, and the continued reduction of drilling activity. The number of active rigs in the US is currently close to 650, down more than 60% since the onset of the industry downturn. Compounding the situation are excess inventories, created in part by ongoing imports of unfairly traded oil country tubular goods."

Carolina Mendoza, Tenaris’ Media Relations Specialist, stated: "Tenaris values their people and their contributions. This was certainly a very difficult decision but it was due to the prolonged economic downturn."

Support

Clif Chitwood, Executive Director of the Great River Economic Development Foundation, offered support. He said: "It's unfortunate but it is in the nature of their business that they have cyclical downturns. Both the county and the state are ready to support Tenaris in any way they can – when they start to ramp back up, before anything can be done, certainly every company must align themselves along with sales in order to just stay in business. Tenaris is a great company and it's a great company for Mississippi County.

"I don't think anyone thought of what the consequences of finding too much oil would be. We were told for so long that we were going to run out of oil, but obviously that's just not true. Now the pipe industry is facing what the American farmers did with falling commodity prices, it's unfortunate. It's also another reason why you never stop trying to recruit new kinds of jobs."

Edited from various sources by Stephanie Roker

Sources: Daily Journal, THV11, The Daily Dunklin Democrat, Arkansas Online

Read the article online at: https://www.worldpipelines.com/business-news/19012016/tenaris-layoffs-due-to-oil-slump/