US Steel is looking for a site to build a new 3 million tonnes per year electric arc furnace (EAF) smelter, as part of its goal of converting to steel production from scrap metal.
The construction of the facility will cost $ 3 billion, it will have two EAFs and will produce improved steel grades. US Steel expects to begin construction of the new plant in the first half of 2022, with production starting in 2024.
“Our goal is to create opportunities to get better, not more,” said CEO David Berritt. “By accelerating our transition to more efficient mini-mill steelmaking, we look forward to continuing to differentiate ourselves from less efficient manufacturing facilities while increasing cycle margins and reducing capital and carbon intensity.”
US Steel said it could locate the plant in the state where it currently operates or at a new site. The final site selection and construction conditions will be subject to state and local incentives and final approval by the US Steel Board.
US Steel currently operates two EAF plants: the 3.3 Mtpa Big River Steel plant in Osceola, Arkansas, and the Fairfield Works pipe plant in Alabama, with most of its capacity still relies on blast furnaces to consume iron ore.
The new steel plant will increase US Steel's consolidated steel production to 18.1 million per year.