More than 100 layoffs coming at Average Pipe Mill in Regina IG News

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Average North America will lay off more than 100 employees at its pipe mill in Regina.

The company is expected to issue the notice sometime this week, with the layoffs expected to happen in mid-February, according to Michael Yates, a senior vice president for Average North America.

Yates blames cheap imports for the layoffs.

Yeates said in a phone call, “The number of imports into the Canadian market has increased really quickly recently and those imports are often being sold below our cost, which is costing us market share and pulling away from our order book.” from calgary.

“Right now we don’t have enough orders to justify our current production levels.”

man posing for photo
Michael Yates is Senior Vice President of Everage North America. (Submitted by Average North America)

Yates said the layoffs are temporary and employees have the right to be recalled.

“We abide by the collective bargaining agreement and do everything we can to make it as easy as possible for our employees,” Yates said.

“These [layoffs] were not expected. Imports coming into the market have had a significant impact on our market and this impact has really started to materialize and flourish over the past few weeks.”

Evraz North America laid off 170 steelworkers from May 1 through June 17, 2022, due to the idling of its large-diameter pipe manufacturing operations in Regina.

Yeates told the CBC in an interview about those layoffs last June, “It’s a very cyclical business and it’s very project-based. In fact, the entire 2021 operation was inactive and we’re not going to do anything there.” were staying.”

“We’re doing great as a business. It’s just that particular product line.”

Ryan McKenzie, president of the United Steelworkers union Local 5890, said layoffs of this size are always worrisome, but may be part of the industry.

“There’s a good stretch in the pipelines but you never want to see people out of work, especially in today’s economy,” McKenzie said.

McKenzie said 25 to 30 workers will be left at the Regina Pipe Mill after this new round of layoffs.

The Company currently has no large diameter pipe orders in Regina.

Yates said Monday that he is optimistic about Evraz’s operation in Regina.

“I think we have a very strong business with good fundamentals and we see great strength in the market over the long term,” Yates said.

“Especially when we look at how well we are positioned to supply the energy transition infrastructure in the future. So we are very well positioned for products, for example for hydrogen transport, or such products that will be used in carbon capture and sequestration applications.”

Yates said about 30 workers at the company’s pipe mill in Camrose, Alta., would also be laid off.