Hundreds of jobs are threatened as bankrupt Bayou Steel Group decided to shutter its plants in Louisiana and Tennessee, Bloomberg News reported Oct. 1.
Bayou, which makes long carbon steel products, filed for bankruptcy after defaulting on its senior secured debt due to lack of liquidity, the report said, citing a company statement. Bayou reportedly listed up to US$100 million of liabilities in its bankruptcy filing.
About 400 workers may be impacted by the closure of Bayou's plant in Laplace, La., while 72 jobs are threatened in the company's operation in Harriman, Tenn., according to the news agency.
In a Sept. 30 statement, Louisiana Governor John Bel Edwards said that Bayou Steel is vulnerable to the Trump administration's steel tariffs as it uses imported recycled scrap metals as raw material. The report noted that scrap steel imports are not covered by the tariffs, although the U.S.-China trade war contributed to a price slump in domestic steel products.
Bayou did not respond to Bloomberg's request for comment on the impact of tariffs on its business.
