David Burritt president and CEO U.S. Steel Source: U.S. Steel
Access to technology and expertise in integrated mills are among the advantages that will accompany the U. S. Steel–Nippon Steel merger, according to David Burritt, U. S. Steel’s CEO. Heat treatment processes are an element in integrated mill operations within both companies’ profiles.
On December 18, 2023, it was announced that Japanese steelmaker Nippon Steel (NSC) would acquire Pittsburgh–based U. S. Steel. Under the deal, Nippon Steel would acquire the company for $14.1 billion, which totals to $14.9 billion when including the assumption of U.S. Steel’s debt. As part of the deal, Nippon Steel will invest $1.4 billion in U. S. Steel’s assets and will share technical knowledge, stated Burritt during his keynote address to the 2024 Global Steel Dynamics Forum.
“They’re experts in integrated mills, and they want to invest here,” he said.
In April, Nippon Steel released a statement that the merger will include U. S. Steel having access to Nippon’s technologies and R&D advancements, “help[ing] U. S. Steel produce more advanced and environmentally sustainable steel for domestic customers.”
A leading integrated steel producer headquartered in Pittsburgh, Pennsylvania, announced a joint venture partnership agreement under which it has taken the first step toward acquiring an Arkansas-based steel manufacturer.
Big River Steel, which operates a LEED-certified Flex Mill™ in northeast Arkansas, will expand U.S. Steel’s technological capability and geographic presence through this agreement. U.S. Steel has purchased 49.9% ownership interest with a call option to acquire the remaining 50.1% over the next four years.
David B. Burritt, president and CEO of U. S. Steel
The Big River flat-rolled mill has advanced technology that allows it to produce a wide product spectrum, including advanced automotive steels and electrical steels, and provide high-quality products and services to customers in the automotive, energy, construction and agricultural industries. Big River’s recently announced Phase II-A expansion is expected to double the mill’s hot-rolled steel production capacity to 3.3 million tons annually.
“Our new partnership with Big River is designed to accelerate our strategy to offer our customers the ‘best of both’ by bringing together the capabilities of integrated and mini-mill steel production,” said David B. Burritt, president and CEO of U.S. Steel. “Big River operates the most advanced, state-of-the-art and sustainable mill in North America, and our investment would ultimately strengthen our competitive positioning in highly strategic steel-end markets, creating an unmatched value proposition for our stakeholders.”
“We have been investing in leading technology and advanced manufacturing so that we can assemble a portfolio of competitive assets with distinct advantages to serve strategic markets to better position U.S. Steel to be an industry leader in delivering high-quality, value-added products,” added Burritt. “The investment in Big River, coupled with our announced investments at Mon Valley Works and Gary Works, would ultimately position U.S. Steel with three core market-leading, differentiated and technologically advanced assets that will enable us to compete with anyone, anywhere, for generations to come. Each of these locations would be able to focus on the products that each facility is best designed to produce. As an organization, we will be nimbler, more resilient and our teams will be more efficient. Collectively, these actions will help us continue to create long-term value for our stockholders, customers, employees and the communities in which we live and work.”
David Stickler, CEO of Big River Steel
“U. S. Steel’s decision to partner with us through this investment in Big River is a decisive vote of confidence in our company, our vision and our people,” said Dave Stickler, CEO of Big River. “After just over two years of operations, we have built a unique platform that features the most advanced technology in our industry, and the very finest steel technicians in the business. We have always called ourselves a ‘technology company that just happens to make steel.’ In U. S. Steel, we have a likeminded technology-focused partner with an enduring tradition of excellence and a commitment to innovation. We are very excited about the possibility for what we can do together. As the newest steel production facility in North America, I could not be more proud to be partnering with a company started by Andrew Carnegie more than 118 years ago.”
Closing of the transaction is anticipated on October 31, 2019.
David B. Burritt, President and Chief Executive Officer
A leading integrated steel producer headquartered in Pittsburgh, Pennsylvania, recently announced it will restart its pipe ill based in Lone Star, Texas.
U.S. Steel Corporation’s No. 1 Electric-Weld Pipe Mill at Lone Star Tubular Operations was permanently idled in 2016 due to challenging market conditions for tubular products created by fluctuating oil prices, reduced rig counts, and high levels of unfairly traded imports. With this restart, the Lone Star No. 1 Mill will provide full-body normalized electric-welded pipe in size ranges 7 inches to 16 inches outside diameter for customers across the U. S., including the very active Permian Basin.
“We are encouraged by an improvement in market conditions and an increased customer demand for tubular products that are mined, melted and made in America,” said President and Chief Executive Officer David B. Burritt.
Douglas R. Matthews, Senior Vice President – Industrial, Service Center and Mining Solutions and Interim Head – Tubular
“We continue to evaluate all options to align our manufacturing capacity with the growing energy market. Restarting the Lone Star No. 1 Mill will give our customers access to the high-quality electric-welded pipe they expect from U. S. Steel,” said Douglas R. Matthews, Senior Vice President – Industrial, Service Center and Mining Solutions and Interim Head – Tubular.
The Lone Star No. 1 Mill has an annual capacity of approximately 400,000 tons. The restart process will begin immediately and will be completed in early third quarter 2019.
With the restart of the second of its two blast furnaces, a major U.S. steel producer expects to step up its supply of American-made steel to support customers demand.
U. S. Steel President and Chief Executive Officer David B. Burritt
United States Steel Corporation recently announced it will restart “A” blast furnace at its Granite City Works, an integrated steelmaking plant in Granite City, Illinois.
“We are excited to announce that after the restart of the “A” blast furnace on or around October 1, all of the steelmaking operations at Granite City will be back online, helping us meet an increased demand for American-made steel that has only grown since our March announcement,” said U. S. Steel President and Chief Executive Officer David B. Burritt. “After careful consideration of market conditions and customer demand, including the impact of Section 232, the restart of the two blast furnaces at Granite City Works will allow us to serve our customers’ growing demand for high-quality products melted and poured in the United States.”
