US Steel to expand plant in Arkansas

It is official that United States Steel will expand its operations in Mississippi County, a $3 billion investment that is expected to create hundreds of jobs.

The Legislature paved the way for this with tax credit legislation worth $150 million for the company, in addition to other incentives available in Arkansas law for the creation of jobs. Alabama would have been in the running for it, and lawmakers said the company’s document was key to landing the facility, which complements its existing Big River Steel facility. It will manufacture steel products from scrap metal.

United States Steel Corporation (NYSE: X) (“US Steel”) today announced that its highly sustainable and technologically advanced next-generation steel mill will be located in Osceola, Arkansas, near Big River Steel’s state-of-the-art mill. of US Steel. The facility is designed to bring together the most advanced technology to create the steel mill of the future that offers cost effective solutions to customers.

The new plant is designed to extend US Steel’s customer benefits as the company charts a bold course toward a more sustainable future. The new optimized steelmaking facility is expected to include two electric arc furnaces (EAF) with 3 million tons per year of advanced steelmaking capacity, a state-of-the-art endless casting and rolling line and advanced finishing capabilities. This first use of endless casting and rolling technology in the United States brings significant improvements in energy, efficiency and capacity to the company’s operations.

Once completed, this project will apply to become LEED® approved. Site selection is subject to a number of factors, including final agreements with major partners. Permitting for the project is pending and the company expects to commence in the first quarter of 2022, with project completion and full operation expected in 2024.

“With this location chosen and the shovels ready, we are reshaping the future of steelmaking,” said US Steel President and CEO David B. Burritt. “We had many competitive site options, but Osceola offers our customers unmatched benefits.”

When complete, the sophisticated new steel mill, together with Big River Steel, will form a 6.3 million ton mega-mill capable of supplying many of North America’s most advanced and durable steels. New non-grain-oriented electrical steel and galvalume/galvanizing lines currently under construction at Big River Steel will further strengthen US Steel’s ability to meet customers’ pressing supply chain needs to meet their own manufacturing expansion. national. The location offers abundant, increasingly renewable and clean energy from Entergy, superior Class 1 rail service from BNSF with connections to other railroads, Mississippi River docks, and inter-city road access. States.

Burritt continued, “The State of Arkansas, Mississippi County, City of Osceola, Entergy, BNSF and other parties have all worked to make this the clear choice of a path forward without roadblocks. We are not going to make our stakeholders wait to see progress. We intend to start this quarter and get to work as soon as the permits are in hand. With its extremely low-cost structure, energy-efficient production equipment and advanced capabilities, this $3 billion project will bring significant benefits to our customers, shareholders, communities, employees and contribute to a more sustainable world.

“Our country and our customers need a strong and resilient supply chain to meet consumer needs, and that starts with US Steel’s advanced and sustainable steels. Steel is essential to much of what the world builds, so how we make our products directly contributes to a better, more sustainable world for everyone. This new facility will build that future. Stay tuned. As we add this to our world-class Big River Steel plant, you are going to see great things as we advance the best for all.SM the future of steel.

“Arkansas has created an ideal business environment for the growth of the steel industry in our state,” said Arkansas Governor Asa Hutchinson. “The investment and well-paying jobs that will result from this announcement will make a real difference in the lives of many families in Northeast Arkansas. I am grateful for the support of the Legislature that has been essential in winning this expansion. Today, US Steel is an important part of our future and we look forward to continued success in the years to come.

“Mississippi County has become a national leader in steel production, and U.S. Steel’s decision to create ‘the steel mill of the future’ in this community continues to underscore why,” said the US Commerce Secretary. Arkansas, Mike Preston. “Not only does Arkansas have a skilled workforce, a reliable power grid, and easy access to river, rail, and highways, but it also has a governor, a general assembly, and many partners and community stakeholders who recognize the importance of expanding economic opportunities for the Arkansans and who will go the extra mile to compete for those opportunities.US Steel is a highly valued member of the business community in the state, and we are excited to continue our partnership with them as they establish the most advanced steel plant in North America, right here in Arkansas.

There has been little reporting in Alabama about the competition for the plant since October.

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