is a Leading American manufacturer of steel for the oil and gas industry US Steel < / span>expects a significant demand reduction during the fiscal year. The company, founded in the beginning of the last century, the famous entrepreneur, Dale Carnegie, has announced a series of "aggressive and meaningful action" aimed at improving the sustainability of the company in response to an outbreak of coronavirus (COVID-19) sudden and significant changes in the global oil and gas markets.
Dispensing the priorities for cash and liquidity, the company seeks to retain strategic flexibility to prepare for the time when the global economy eventually recovers from the current situation.
"In this unprecedented and rapidly changing environment our main priority remains the safety and well-being of our employees ... to ensure a safer future for all our stakeholders, it is time to take aggressive actions to reposition the company," said President and CEO US Steel < / span>David B. Burritt.
the Company will immediately stop blast furnace No. 4 at the plant in Gary, in maintenance and overhaul. US Steel plans to write a fourth blast furnace at idle until market conditions improve. In addition, the company will temporarily suspend operation of the blast furnace at the plant in Granite city.
since the end of may, US Steel plans to suspend all production of pipes in factories Lone Star and Lorain for an indefinite period of time in response to weak market conditions, including continued high levels of imports and the decline in demand caused by a sudden, significant drop in oil prices.
the Company gives its strategic projects in line with today's market realities, reducing the capital cost in 2020 to $ 125 million. Currently, the company expects capital expenditures in 2020 will be about $ 750 million.
US Steel< / span> does not expect that the announced measures will have a significant impact on adjusted EBITDA, adjusted net loss or adjusted net loss per share in the first quarter. However, the company expects a significant demand reduction during the fiscal year, although it is currently impossible to determine an updated evaluation of third-party supplies of each segment for the entire year.
