United States Steel Corporation announced Thursday it was beginning an exploratory site selection process for a new state-of-the-art mini mill in the United States.
The company said that its Board of Directors had authorized an exploratory site selection process for a three-million-ton mini mill flat-rolled facility, that would combine two state-of-the-art electric arc furnaces with differentiated steelmaking and finishing technology, including equipment already owned by the company.
The continuation of mini mill technology adaptation will expand the company’s ability to produce the next generation of highly profitable proprietary sustainable steel solutions, the company said, including Advanced High Strength Steels.
Potential locations include both states where the company has existing EAF operations, as well as greenfield sites. The company said it is estimating its investment at approximately $3 billion, funded primarily from existing cash and expected free cash flow.
“Our customers are looking for like-minded partners to continue marching towards a sustainable future,” U. S. Steel President and CEO David B. Burritt said. “We are demonstrating our commitment to this shared goal by beginning the process to increase our sustainable steelmaking capability. We already own and operate the most advanced and sustainable mini mill in the United States. Now we plan to expand this competitive advantage by continuing to combine our research and development and product innovation, deep customer relationships, and low-cost iron ore with additional mini mill steelmaking technology to create long-term value for our investors.”
The planned mini mill investment is a step towards the company’s goal of reducing greenhouse gas emissions by 20 percent by 2030, and net zero carbon emissions by 2050.
Final site selection and other terms are subject to state and local support, final approval by the Board of Directors and other factors. Construction is expected to begin in the first half of 2022 with production expected to begin in 2024.
In April, a major upgrade of U.S. Steel’s Mon Valley Works south of Pittsburgh was abruptly canceled as part of the steelmaker’s campaign to eliminate its carbon emissions by 2050. The company had planned to spend $1.5 billion on the upgrade of the facility.