The United States Steel Corporation has taken a $700 million step into Arkansas markets. The large purchase from Big River Steel constitutes US Steel’s “first step” toward moving into southern markets, says company officials.
The U.S. Steel Corp. was created nearly 120 years ago by Andrew Carnegie, and has since expanded to become the preeminent steel manufacturer in the United States. Following that tradition, the U.S. Steel Corp. has decided to purchase a 49.9 percent share in Big River Steel, providing a secure foothold for the company without tying the two firms’ fortunes together.
This new partnership was partially encouraged by Big River Steel’s new investment in flat-rolled steel, which would double its steel production to 3.3 million tons of steel in 2020. This new move would allow U.S. Steel to expand its operations across the nation, as well as increasing its yearly profit to over $1 billion over the next two years.
This new collaboration spells economic success for Arkansas. Since the current tariffs against China drive up the cost of oriental steel, such metals created closer to home provide a viable alternative for American companies.
The United States Steel Corporation hopes to acquire Big River Steel Co., with this $700 million move being the first of many moves to promote the mining and manufacturing industries in the South.
“Big River operates the most advanced, state-of-the-art and sustainable mill in North America,” says David Burritt, President and CEO of U.S. Steel. “Our investment in Big River will strengthen our competitive position in steel markets.” From this, the outlook for Arkansas mining and manufacturing looks extremely positive, and acts as an encouraging prospect for U.S. Steel and other industrial companies moving forward.
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