A new report says US Steel pipe manufacturer American Pipe & Supply will close its mills in Michigan, Ohio and Wisconsin next year and may shut down the entire company in 2018.
The company said on Wednesday it plans to cut 1,200 jobs in Wisconsin and 1,000 in Michigan and would cut more than 4,000 jobs in Ohio by the end of 2019.
American Pipe’s parent company, United Pipe, said on Monday it would be laying off 1,100 employees in the United States and hiring about 1,300 people in Canada.
The cuts are part of a plan to restructure American Pipe, the parent company of American Pipe and Steel, according to the company.
American will close all manufacturing and distribution facilities in Michigan by the year’s end, according a company statement, and will lay off 1 in the first quarter of 2019 and cut another 1,400 jobs in the second quarter of that year.
American’s decision to close its manufacturing operations will impact about one-third of the pipe pipe production in the U.S. and more than 20% of the company’s business, the company said.
US Pipe’s statement said it will invest $300 million to $400 million to maintain operations.
The move to cut jobs in Michigan comes as American Pipe faces growing competition from pipe-making companies such as U.K.-based Bournemouth Pipe and European-based Nesbitts.
U.N. sanctions against North Korea in the wake of the Kim Jong Un regime’s recent nuclear test and ballistic missile launches have prompted companies such the U., the United Kingdom and North Korea to look to the U, the U.-K., the European Union and China to supply their pipes, according the Reuters news agency.