Evraz has laid off 170 employees at the steel mill in Regina since the beginning of May after choosing to idle its large diameter pipe production in the city, according to a statement from the company.
The company expects to lay off another 50 to 75 workers in the coming months after crews complete their current project.
“Although our overall business is strong, including demand for our other steel products in Regina, the large diameter pipe market has been soft,” Michael Yeats, Evraz Canada senior vice-president, said in a statement.
Yeats said the large diameter pipe business is “highly cyclical,” and as a result, the company is focusing on products that support clean energy infrastructure such as hydrogen and carbon capture projects.
“We are hopeful new markets will offer a more consistent landscape for our (large diameter) pipe fabrication operations and the jobs it supports,” Yeats said.
Evraz has offered employment opportunities in Calgary to the workers who were laid off in Regina. Prior to the layoffs, the company also gave workers in the tubular division the option to transfer to steel operations within the Regina mill.
The company has extended employee benefits to the laid-off workers and their families for up to six months as part of its collective bargaining agreement.
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“We’re doing the best we can to take care of (the workers) in a very unfortunate situation,” said Annie Stefanec, director of communications for Evraz North America.
Yeats said it is hard to predict when the market will rebound. However, he anticipates demand for large diameter pipe projects will increase in the next year or two.
CTV News reached out to the steelworkers union, but no one was available for comment.
