US service centre chain Reliance Steel & Aluminum will permanently shut down operations at three of its subsidiary facilities in Texas and Louisiana, Kallanish reports.
The facilities in question include Sunbelt Steel and Continental Alloys & Services, located outside Houston, Texas, and an additional facility located in Broussard, Louisiana.
According to a representative with Reliance, the last day of operation at the Sunbelt facility was 8 May, and the other facilities will gradually shut down over the next few weeks.
The reason for these shutdowns are due to a decline in the oil and gas industry caused by the Covid-19 pandemic, the representative confirms.
In late April, during Reliance’s first quarter earning conference, ceo James Hoffman announced that “…[due to] lower oil prices in the first quarter of 2020, we’ve made the decision to permanently close three of our business, supporing the energy end market.”