MICHIGAN CITY — A northwest Indiana steelmaker just warned union workers it might lay off 2,400 people as soon as January. ArcelorMittal is the largest steel company in the world, with 310,000 employees worldwide and close to 4,000 workers at its steel mill about 10 miles from Gary.

But union officials told WSBT News no one is buying right now, and that's not bad news for just the steelworkers.

At Midtown Barber Shop in Michigan City, the talk isn’t just about hair anymore, but about cuts of a different kind. Many of their clients work at ArcelorMittal in nearby Burns Harbor. But they’re not so sure for how much longer.

“I’ve had two customers already this morning that work there,” said barber Jack Drews. “One of them has been there 35 years and he said he thinks he’s going to be out.”

The steel-making company, the biggest of its kind in the world, has announced to the local steelworkers union that it might lay off as many as 2,400 employees in January. A spokesperson blamed the possible cuts on the recent drop off in global steel production and demand.

“Potential workforce reductions are a direct result of the extraordinary economic environment we are facing and the company hopes to return workers to their jobs as market conditions warrant,” said an ArcelorMittal spokesperson.

Surrounding communities, including Michigan City, are bracing for the possible ripple effect. Mayor Chuck Oberlie estimated about 1,000 people who work at the plant live in LaPorte County.

“So that means our businesses, our restaurants, retail may also see a negative impact,” said Oberlie.

The cuts could also be felt further east in the city of LaPorte. Economic development officials said at least three metal suppliers and fabricators could be affected by layoffs at ArcelorMittal.

“The trickle down effect really hits everybody,” said Drews. “One time when NIPSCO was on strike, we lost a lot of customers who decided to just cut their own hair. They were off work for eight months.”

“The concern for a lot of us here is if you turn a furnace off, will you, in fact, turn it back on again?” questioned Oberlie. “None of us really knows what the time schedule is for this economy to bottom out and start to rebound.”

ArcelorMittal also owns the IN Tek/IN Kote plant in New Carlisle.
Last spring, the company announced plans for a possible expansion there — that would bring 100 new jobs. The local union president told WSBT News Monday afternoon those plans have been put on hold. It's not off the table; but it certainly isn't happening anytime soon.