United States Steel Corp. on Wednesday announced that it will build a $1.9 billion direct reduced iron facility at its Big River Steel Works in Osceola. The facility will be the first of its kind in the United States.
The investment strengthens U. S. Steel’s next-generation steelmaking capabilities and reinforces its position as a leader in modern, efficient steelmaking, according to a press release. The new facility will leverage U. S. Steel’s 2022 investment into direct reduced-grade pellet capabilities at its Minnesota Ore Operations Keetac plant, creating a direct link between our mining operations, EAF feedstock creation and steel production at Big River Steel Works, the release stated.
“Northeast Arkansas’s reputation as a steel production leader is only getting stronger,” said U.S. Sen. John Boozman (R-Ark.). “Significant investments and deployment of innovative technology like this latest U.S. Steel facility in Mississippi County demonstrate profound confidence in our business climate and skilled workforce, which local, state and federal officials have all worked tirelessly to foster. I’m pleased Big River Steel is adding a new chapter with this historic announcement and look forward to the economic benefits it will deliver for workers, the region, our state and nation.”
By placing DRI production at Big River, where the $3 billion-plus Big River 2 expansion is now in full production, and there are four electric arc furnaces (EAF), the investment will eliminate the need to ship DRI to the facility and build in a competitive sourcing advantage for Big River’s feedstock, company officials said.
“From iron ore in Minnesota to steel production in Arkansas, this $1.9 billion investment strengthens our ability to create steel that is truly mined, melted, made in America, from start to finish. By vertically integrating DRI production directly at Big River Steel Works, we enhance efficiency, secure our competitive advantage, and position U. S. Steel for long term success. Our partnership with Nippon Steel helped accelerate this investment years sooner than would have otherwise been possible,” said U. S. Steel president and CEO David B. Burritt.
Together, these investments advance vertical integration across U. S. Steel’s operations under a single, integrated American supply chain, improving efficiency, quality and supply chain control while enhancing the company’s ability to deliver consistent, high-quality steel with greater reliability for its customers.
This project is expected to support approximately 200 full-time Big River Steel Works employees and 35 full-time embedded contractor roles, while creating an estimated 2,000 construction jobs at peak.
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