U.S. Steel to invest $1 billion in Mon Valley Works facilities

Credit: U.S. Steel

United States Steel Corp. will invest $1 billion in new cutting-edge steelmaking technologies and facilities at its Mon Valley Works steel processing plant near Pittsburgh, the company announced on Thursday, an investment that is expected to lift the economy of southwestern Pennsylvania and provide job security for thousands of steelworkers.

The $1 billion investment will be split into the construction of two projects – a sustainable endless casting and rolling facility at its Edgar Thomson Plant in Braddock, and a cogeneration facility at its Clairton Plant in Clairton. The endless casting and rolling facility will be equipped with cutting-edge technology that combines thin slab casting and hot rolled band production into one continuous process. It will be the first facility of its kind in the United States, and one of just a few in the world.

The new endless casting and rolling facility will replace the existing traditional slab caster and hot strip mill facilities at the Mon Valley Works. Employees will be trained in this advanced form of steelmaking.

“This is a truly transformational investment for U. S. Steel,” David Burritt, president and CEO of U. S. Steel, said. “We are combining our integrated steelmaking process with industry-leading endless casting and rolling to reinvest in steelmaking and secure the future for a new generation of steelworkers in Western Pennsylvania and the Mon Valley.”

The company said the implementation of the endless casting and rolling technology will significantly improve the quality of U.S. Steel’s products in the appliance, construction and industrial markets. The Mon Valley Works will become the principal source for the production of the company’s XG3 Advanced High Strength Steel that assists automotive customers in meeting fuel efficiency standards. It will also improve environmental performance, energy conservation and reduce the carbon footprint at the Mon Valley Works. Production is expected to begin in 2022, pending permitting and construction.

Also, the new cogeneration facility will convert a portion of the coke oven gas generated at the Clairton Plant into electricity to power the steelmaking and finishing facilities throughout U. S. Steel’s Mon Valley operations. Both of these projects will result in significant improvements in emissions compared to the existing facilities to be replaced.

The manufacturing industry and state and local officials lauded the investment by U.S. Steel.

“The announcement today by United States Steel opens a new chapter in the history of manufacturing in Pennsylvania,” David Taylor, president and CEO of the Pennsylvania Manufacturers’ Association, said at a news conference at the Clairton Plant. “The combination of these significant upgrades will reinforce western Pennsylvania as a global center of excellence for advanced manufacturing, the Mon Valley as the nexus of America’s most state-of-the-art industrial metals production, and U.S. Steel as an industry leader and economic engine for our commonwealth and our country.”

Taylor said the U.S. Steel investment would allow the greater Pittsburgh region to prosper for generations. He credited President Donald Trump for defending domestic steelmakers from the “predatory trade practices of mercantilist foreign governments” and allowing U.S. steelmakers to be more competitive.

U.S. Steel employs about 4,000 people in Pennsylvania, and the company’s Mon Valley Works employs 3,000 people whose jobs support an additional 10,500 jobs throughout the region. Construction of the new endless slab caster will create employment for 800 building and construction trade workers, according to lawmakers.

Rich Fitzgerald, Allegheny County Executive, said, “What this does is make sure that there’s going to be steelmaking in this community for generations to come. That’s an important thing for all of us. These jobs that are here are staying – they’re not going anywhere else.”

House Speaker Mike Turzai (R-Allegheny) said the impact goes beyond employment. “Last year, the Mon Valley Works generated $4.6 billion in economic output throughout the region, roughly half of which is generated directly by these operations,” he said.

Pennsylvania Lt Gov. John Fetterman cited that, in addition to the massive economic impact, the company’s investment will also be good for the environment and reduce emissions. “We didn’t have to choose between the environment or jobs, or steelmaking in the Mon Valley and the environment, because this environmental commitment, over $1 billion, will reduce the greenhouse gas footprint,” Fetterman said.

United Steelworkers International Vice President Tom Conway, who chairs the union’s negotiations with U.S. Steel, said the proposed improvements will bolster the long-term job security of about 3,000 USW-represented workers at the company’s facilities in western Pennsylvania.