- The United States Steel Corporation (NYSE: X) share price rose 5.35% today. That’s why it happened.
The United States Steel Corporation (NYSE: X) share price rose 5.35% today. Investors appear to be reacting positively to US Steel’s announcement that its highly sustainable and technologically advanced next-generation steel plant will be located in Osceola, Arkansas, near US Steel’s state-of-the-art Big River Steel plant. This 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 was designed to expand US Steel’s customer benefits as the company charts a bold path towards a more sustainable future. And the new optimized steel production facility is expected to feature 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 require you to become LEED certified. And site selection is subject to a number of factors, including final agreements with key partners. Authorization for the project is pending and the company plans to inaugurate the land in the first quarter of 2022 with project completion and full operation slated for 2024.
When completed, the sophisticated new steelmaking plant associated with Big River Steel will form a 6.3 million tonne mega-plant capable of supplying many of the most advanced and durable steels in North America. And the new non-grain oriented electrical steel and galvalume / galvanizing lines currently under construction at Big River Steel will allow US Steel to better meet the pressing supply chain needs of customers to meet their own domestic manufacturing expansion. . This location provides abundant, increasingly renewable and clean energy from Entergy Arkansas, BNSF’s superior Class 1 rail service with connections to other railroads, Mississippi River docks, and access to international trucking. -States.
“With this location selected and the shovels ready, we are reshaping the future of the steel industry. We had many competitive site options, but Osceola offers our customers unparalleled benefits.
“The State of Arkansas, Mississippi County, City of Osceola, Entergy, BNSF and other parties have all worked to make this the clear choice for a roadblock-free route to the future. We are not going to keep our stakeholders waiting to see progress. We plan to innovate this quarter and get to work as soon as the permits are in hand. With its extraordinarily 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 advanced and sustainable steels from US Steel. Steel is essential to much of what the world builds, so the way we make our products directly contributes to a better, more sustainable world for all. This new facility will build that future. Stay tuned. As we add this to our world-class Big River Steel facility, you’re going to see great things as we advance the future of steel – the best for all.
– US Steel President and CEO David B. Burritt
“Arkansas has created an ideal business environment for the growth of the steel industry in our state. 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 which has been essential in winning this expansion. Today, US Steel is an important part of our future and we look forward to continuing our success in the years to come. “
– Arkansas Governor Asa Hutchinson
“Mississippi County has become a national leader in steel production, and US Steel’s decision to create the ‘steel mill of the future’ in this community continues to underscore why. Arkansas not only has a skilled workforce, a reliable electricity grid, and easy access to rivers, railways, and highways, but it also has a governor, a general assembly and many community partners and stakeholders who recognize the importance of expanding economic opportunities. for the Arkansans and who will go the extra mile to compete for these opportunities. US Steel is a valued member of the state’s business community, and we are delighted to continue our partnership with them as they establish the most advanced steel fabrication facility in North America, here. even in Arkansas.
– Arkansas Secretary of Commerce Mike Preston
Disclaimer: This content is intended for informational purposes. Before you make an investment, you need to do your own analysis.