United States Steel Corporation (U.S. Steel) recently announced that it is revising its operating model and organizational structure to support its strategic transformation and better serve its customers, effective Jan. 1, 2020.
The initiatives reduce costs and align the company’s corporate structure more closely with its previously announced strategic investments in leading technology and advanced manufacturing, including the purchase of a minority interest in Big River Steel, a new and highly advanced flat-rolled mini mill, with a clear path to consolidation.
The corporate structure changes, the company said, will allow the company to establish a more competitive cost structure with enhanced capabilities to serve priority customers in strategic markets. It noted that the updated operating model will create a team that is charged with leading the execution of the strategy and increasing profitability and will further unlock the value of the company’s investments in Big River Steel and at Mon Valley Works and Gary Works. The enhanced operating model positions the company to deliver approximately $200 million of annual fixed cost savings by 2022, U.S. Steel said.
“Our enhanced leadership team structure is the right next step to help U. S. Steel achieve its ambitious strategy to create the leading integrated and mini-mill steel company with a world competitive, ‘best of both’ footprint to better serve our customers,” U.S. Steel President and CEO David B. Burritt said. “We are intensely focused on improving our capabilities to win in strategic markets, reducing structural costs with a leaner footprint, and attracting and investing in the best talent that share our S.T.E.E.L. Principles. We have been investing in building a footprint of world-class assets and with today’s announcement, we will become a more focused, agile organization with a world-class leadership team ideally structured to capitalize on market opportunities and position us for success.”
U.S. Steel also announced several executive management changes.