Atlas Tube becomes latest to lay off workers

Editor's note: This article has been edited from its original form to include comments from a company press release.

Atlas Tube of Blytheville is laying off 35 of its employees this week, joining Tenaris and other area companies affected by the recent steep drops in oil prices.

Atlas called the layoffs temporary.

"The continued flow of unfairly traded imports and the recent decline in the OCTG market have resulted in an excess level of inventory of energy tubular products throughout the United States and Canada," the company said in a press release. "Over the past several weeks, many domestic producers of OCTG products have announced layoffs or plant closures due to excessive inventory."

TMK Ipsco, EVRAZ, Tenaris and Vallourec have announced layoffs, the release said.

"We are not immune to this, and our EnergeX Thomasville location will be on temporary layoff beginning in mid-March," the release continues. "As a result, today we were forced to announce a temporary layoff in our Blytheville, Arkansas, facility. This temporary layoff will impact 35 employees. Operations in Blytheville will continue on a two-shift schedule and will be heavily focused on the production of hollow structural steel. It is our hope that market conditions will improve and allow for callbacks as soon as possible."

According to Mississippi County economic developer Clif Chitwood, Atlas had capacity for 100 employees, but was operating at around 80 prior to the layoffs -- making the 35 employees a significant cut.

"Atlas makes some structural tubing as well, so hopefully that will provide them some sort of cushion going forward," he said. "Actually I won't be surprised if we see layoffs at all the pipe companies before this is over. In the capitalistic system, there is no event that is good that isn't ill for someone else. Low gas prices are good for the vast majority of Americans, but they are costing Mississippi County jobs for a period of time. Of course we don't know how long gas will stay at these prices."

After the layoff of several hundred Tenaris employees in January, now more workers are being added to the active job hunt for positions which are not really open at any local plants.

"The job opportunity problem is not just here. The whole country is not creating jobs," said Chitwood. "It's very bad. I know guys from Tenaris who were top flight guys, operating big machines on those lines, and making good wages. It seems like in the past, companies made more of an effort to hold on to talented people longer during tough times than anybody is now."

sspears@blythevillecourier.com