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U.S. Steel Announces Construction of Electric Arc Furnace and Tubular Products Coupling Facility in Jefferson County, Alabama

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US Steel Corporate News

PITTSBURGH, March 19, 2015 – United States Steel Corporation (NYSE: X) is pleased to announce two capital investment projects valued at a total of $277.5 million.  The first capital project is the construction of a technologically advanced electric arc furnace (EAF) steelmaking facility at its Fairfield Works in Birmingham, Ala., located in Jefferson County.  The company will also construct a tubular products coupling facility at Fairfield Works to manufacture couplings with premium, semi-premium and American Petroleum Institute (API) connections for customers in the oil and gas industries. 

“These investments will directly support U. S. Steel’s ongoing transformation journey,” said President & CEO Mario Longhi.  “Together, these projects will enhance our operational flexibility and allow us to serve our customers better, two critical steps in creating shareholder value.”

The EAF is part of the company’s larger transformation, The Carnegie Way, in which a large number of initiatives to improve the company’s customer intimacy, operating flexibility, cost structure and raw materials position are being implemented.  The tubular coupling facility is an integral part of the company’s plan to develop and manufacture oil country tubular goods (OCTG) products with premium connections.  The facility will feature four coupling cells to manufacture couplings for all of U. S. Steel’s premium connections, including USS Liberty FJM®, USS-Patriot EBM™ and USS-Patriot TC™ connections, for customers in the energy industry.

U. S. Steel has received the necessary authorization and economic incentives from Jefferson County to invest $230 million to construct the EAF at Fairfield Works in place of the facility’s existing blast furnace and an additional $47.5 million in the construction of the coupling facility.  The construction project will be a significant investment into Jefferson County, create approximately 650 temporary construction jobs over the course of both projects and ensure the future of steelmaking in Alabama.

Construction of the EAF will begin in the second quarter of 2015, with construction expected to be complete in the third quarter of 2016.  The construction on the coupling facility is also anticipated to begin in the second quarter of 2015 and is expected to be complete in the first quarter of 2016.  Throughout the process, U. S. Steel will continue to operate Fairfield Works’ steelmaking and finishing operations to serve both flat-rolled and tubular customers in accordance with market requirements.

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