“This investment is an important step to improve our cost structure and positions our tubular business to win over the long term. We are committed to investing in the sustainable steel technology required to be a value-added tubular solutions provider for our customers,” U. S. Steel president and chief executive David B. Burritt said in a statement.
U. S. Steel announced plans to build the furnace in March 2015, but halted the project nine months later on account of a downturn in the steel markets. But Burritt said conditions have improved enough to allow the project to proceed.
“Thanks to (President Donald Trump’s) strong trade actions and improved market conditions, support from the United Steelworkers and incentives from the State of Alabama and the Jefferson County Commission, we are excited to add EAF capabilities to our company’s footprint and provide sustainable tubular solutions for our customers,” Burritt said.
U.S. Steel said it expects to spend around US$215 million to complete the furnace and to modernize the rounds caster that will serve it. The furnace will have a capacity of 1.6 million tons, and construction is to resume immediately, the company said.