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Pittsburgh, Pennsylvania — An exploratory site selection process for the construction of a new state-of-the-art mini mill in the United States was announced today by United States Steel Corporation (NYSE: X), which is a part of the company’s ongoing transition to its Best for All℠ strategy.
It has been authorized by the United States Steel Board of Directors to begin an exploratory site selection process for a new three-million-ton mini mill flat-rolled facility to be built in the United States to increase the company’s capability.
With two state-of-the-art electric arc furnaces (EAFs) and differentiated steelmaking and finishing technology, the planned mini mill will combine purchased equipment already owned by the Company with newly developed technology.
The Company’s ability to produce the next generation of highly profitable proprietary sustainable steel solutions, such as Advanced High Strength Steels, will be enhanced as mini mill technology is further implemented.
Locations that could be considered include both states in which the company already has EAF operations as well as new greenfield developments.
A total of approximately $3 billion has been estimated so far, and it is currently anticipated that the majority of the funds will come from existing cash and expected free cash flow.
The final investment requirement is dependent on the final site selection as well as the scope of value-added downstream finishing assets to be implemented.
With the planned mini mill investment, the Company will take a significant step toward achieving its 2030 goal of reducing its global greenhouse gas (GHG) emissions intensity by 20 percent, compared to a baseline year of 2018, and will be better positioned to achieve its 2050 net zero carbon emission target.
In addition, the addition of mini mill steelmaking will provide a platform for the expansion of U. S. Steel’s verdeX™ sustainable product line, which will deliver differentiated steels that are produced with significantly lower greenhouse gas emissions than the traditional integrated steelmaking process.
Several factors, including state and local support and final approval by the United States Steel Board of Directors, will influence the final site selection and other construction terms.
Following receipt of all necessary environmental and operating permits, the Company expects to begin construction on the mini mill in the first half of 2022, with production beginning in 2024, according to current projections.
In the course of its third quarter earnings call, the Company intends to provide additional details regarding its strategic progress.
The construction industry has been rocked by rising steel, aluminum and copper prices. The USS move to expand is a welcoming sign of confidence in the next few years. Stability and price decreases for raw materials still have yet to be seen.